12, June 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound also fell against the dollar at yesterday's session. The good economic data could not protect the pound from the market sentiment influence which prefers the dollar now. The industrial production showed a growth in April stronger than in the forecast.

The bounce from 1.6835 downward trend line led to the strong support level 1.6765 breakthrough. The level breakthrough mostly came amid yesterday's fundamental data. From a technical and fundamental side the trend remains downward.

The price is finding the first support at 1.6730, the next one is at 1.6670. The price is finding the first resistance at 1.6800, the next one is at 1.6860.

The price is in the Cloud and above the Chinkou Span. The Kijun-Sen is directed upward. The Cloud is descending. The downward movement will be continued as long the price is in the Cloud.

The MACD histogram is in a positive area. The indicator is descending.

Trading recommendations

There is corrective growth back to the level 1.6800.

The false 1.6800 retest would lead to an active price bounce down. The potential decrease target is the support level 1.6705.