12, September 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The BoE speeches reduced to the familiar rhetoric that the interest rate is likely to be raised no earlier than 2015. The UK news set has presented the most interesting information - the August RICS house price balance report showed the appraisers number reduction who expects the price growth in the short time, up to 40% from 48% previously.

Based on the volume which was on the trades closing, the pound clearly intends to continue the correctional price growth up. In addition, it is worth noting the level of 1.6270 testing. The gap was closed.

The price is finding the first support at 1.6180, the next one is at 1.6100. The price is finding the first resistance at 1.6270, the next one is at 1.6340.

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 and the Kijun-sen show a horizontal 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

After the trend line 1.6270 breakthrough up the way to the resistance level of 1.6340 will be opened.