12, February 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British currency spent yesterday versus the dollar almost at the same level and closed trading on the prices of opening.

It is most likely that the pound soon will show a decrease. The COT reports are fundamental. By short-term trading it is strongly recommended to supplement data from reports with technical analysis.

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 trend line 1.6400 breakthrough was on small volumes. The price continues to go up mechanically, although there is no special support from the buyers.

If the price strengthens above the trend line it will open the way to the nearest resistance level 1.6450.