10, June 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound spent trading against the dollar, as the euro, in a sideways range, but closed at neutral positions – almost at opening prices. The messages from the "islands" caused the multi-directional movement, due to the ambiguity results. The market liked the message that the British inflation expectations in May left above the Bank of England target level. This week British data package, according to forecasts, is expected to show further improvement signs – that can be confirmed by the industrial production data for April, as well as the employment figures for May.

British Pound broke the strong resistance level 1.6765 on the volume and came close to the downward trend line 1.6840. Week, rising trendline is located near the descending trend line, which stands in the good resistance way to buyers.

The price is finding the first support at 1.6730, the next one is at 1.6670. The price is finding the first resistance at 1.6800, the next one is at 1.6860.

The price is in the Cloud and above the Chinkou Span. The Kijun-Sen is directed upward. The Cloud is descending. The downward movement will be continued as long the price is in the Cloud.

The MACD histogram is in a positive area. The indicator is descending.

Trading recommendations

The mark 1. 6765 is a two crosshair trend, which retest is more likely to lead to the downward trend continuation.

The 1.6765 support break will be a good signal down to lower price. The potential targets are the following marks: 1.6710, 1.6660, 1.6570.