10, October 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Britain currency decreased at the yesterday’s trading. Before this the pound has considerably strengthened its position against the dollar.

Investors are waiting for the Bank of England interest rates decision that will be announced today.

The upper bound channel breakthrough of 1.6100 was followed by the high volume formation. The subsequent growth rates allow customers to consolidate above the strong resistance level of 1.6180 where the price is being traded now.

The price is finding the first support at 1.6100, the next one is at 1.6030. The price is finding the first resistance at 1.6180, the next one is at 1.6270.

There is a non-confirmed and a weak sell signal. The price is on the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Golden Cross”. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a neutral territory. The price is falling.

Trading recommendations

We expect the 1.6180 line break that will open the way for the buyers to 1.6270.