13, March 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

British newsflow contained important events that could push the pair GBP/USD aiming to an increased activity, but the British currency wasn’t marked by strong movements versus the dollar. For the most of time sterling was under the pressure, and the outcome of the day was a slight decrease in the sterling. Apparently, the BOE performance managed by M.Karni gave no reason for optimism, as it demonstrated no intention of the British regulator to abandon the soft policy.

The first support is 1.6600, the next – 1.6555. The nearest resistance is 1.6670, then 1.6750 goes.

There is a strong sell signal; the pair broke the Cloud down. The price is below the cloud and above the Chinkou Span.

The downward movement will be continued as long the price is below the Kijun-sen. The Cloud is neutral. The Tenkan-Sen is directed down and the Kijun-Sen is horizontal.

Bollinger Bands indicator points downward. Its bands are broadening.
MACD is in the negative area. The indicator is slowly decreasing

Trading recommendations

The key level is the mark 1.6600. This level break would lead down to the end a long uptrend. In the short term testing a "triple top" model is expected. The potential goal is the level 1.6500, 1.6460 working out.