11, February 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound keeps trying to grow. The British currency grew last Friday versus the dollar regaining the previous day’s losses. Yesterday during the European session, like the euro, the pound was under short-term pressure.

The pair reversed at the support 1.6200-1.6260. Should it overcome this level it can grow further to the resistance 1.6620 with possible reaching the key resistance 1.6750.

There is a weak and confirmed sell signal. The price is in the cloud and above the Chinkou Span.
Tenkan-Sen is crossing Kijun-sen upwards. The downward movement will be in a force as long the price is below the Kijun -sen.

Bollinger bands indicator is broadening being directed upwards.
The MACD is in a positive zone, showing a growth.

Trading recommendations

The 1.6264 retest did not happen. This level consolidation caused a bounce up. We expect a growth to 1.6484 – 1.6500 in a short-term. If the pair breaks 1.6500 it may go to 1.6644.