11, September 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The attempts to continue lowering the pound at Tuesday's session had a short term success. The British currency noted a new low against the dollar amid the same questions about the Scottish independence influence, still the pound recorded a very slight plus near the opening prices on the day. The sterling stayed afloat with the UK economic data support and the head of the Bank of England M.Karni’s statement.

The pound downward movement was stopped at the intermediate support level of 1.6100. The two-day consolidation at the level led to the price bounce upwards and came to the resistance level of 1.6180.

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 confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows 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 correcting.

Trading recommendations

We believe the consolidation will be above the support level of 1.6180.