13, August 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound stayed on one spot at the last session and closed the trading day with a little growth. Obviously, in the absence of any information, investors decided to wait for the new guidelines which should appear later this week as a result of the UK labor market data release and the BoE inflation report publication.

The pound managed at least to update the 1.6766 week minimum, but trading volumes form a rather strong divergence and do not support the sellers.

Still the trade on this instrument is in the descending channel direction. The signals for the bearish trend reversal have been reported.

The price is finding the first support at 1.6770, the next one is at 1.6700. The price is finding the first resistance at 1.6840, the next one is at 1.6900.

There is a confirmed and 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 consolidating.

Trading recommendations

We expect trading with a weak volatility. First of all, this is due to the GBP tomorrow's new expectations which in the longer term will predetermine the price movement.