11, March 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

This Friday the British pound fell down versus the dollar, which resulted in a small loss of sterling in a dispute with the "buck" at the end of the week. The information about the UK economy "behind the curtain" wasn’t published, and the market was guided by an external news flow, where the main aspects were the news on the employment situation in the United States. Apparently, the British pound will show a limited volatility this week.

The first support level is 1.6600, the next one is 1.6555. The nearest resistance level is 1.6750.

There is a strong sell signal; the pair broke the Cloud down. The price is below the cloud and above the Chinkou Span.

The downward movement will be continued as long the price is below the Kijun-sen. The Cloud is neutral.
The Tenkan-Sen is directed down and the Kijun-Sen is horizontal.

Bollinger Bands indicator points to a flat. Its bands are broadening being directed aside.
MACD is in the negative area. The indicator is slowly decreasing

Trading recommendations

The buyers have not been able to break above the daily resistance level 1.6760 for about a month. A continued consolidation level is a good signal for a pullback down.

The support level 1.6580 should be worked out. This level break will open the way down to the rising trend line 1.6510 - 1.6500.