13, May 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The resistance level 1.6970 became the long upward trend turn point. The rebound from the level led to a lower bound uptrend 1.6900 breakthrough. In addition, the British pound decline was carried out on high volumes.

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

The downward correction is expected to be continued. The support level 1.6760 and rising trend line 1.6720 will be the potential target for the price decrease.

The rising trend line 1.6720 retest is more likely to lead to the price bounce up with the uptrend continuation.