10, September 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound continued its decline against the dollar. The price gap in about 55 points was not closed and the downward trend was continued amid the increased volumes.

The Scotland separation probability gives the uncertainty to the UK economy perspective and gives more assurance that the Bank of England will have to postpone the first rate raise which support the pound demand.

The price is finding the support at 1.6030. The price is finding the first resistance at 1.6100, the next one is at 1.6180.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The price is consolidating.

Trading recommendations

The downward trend line 1.6180 retest is more likely to lead to the strong price support level 1.6080 decrease.