12, May 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Fast upward trend continuing did not happen, the British pound broke and consolidated below the support line 1.6950. The support break occurred at a sufficiently large volume, the sellers actively sold the pair.

There is the rising trendline and the support level 1.6910 on the pound’s way which is the last week maximum. 

The support is 1.6860, the next one is 1.6800. The resistance is 1.6940, the next one is 1.7000. The price is in the Cloud and under the Chinkou Span.

The downward movement will be continued as long the price is under the Kijun-Sen.

The MACD histogram is pointing down, indicating the current downtrend movement rates.

Trading Recommendations

If the news does not lead to the support level 1.6910 breakdown, we can expect a bounce up. The potential growth target will be the resistance level 1.6990.