13, October 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound tried to continue its growth against the dollar, but it ended the last week with a decline as the euro did. The UK important events have not provoked any significant reaction in the market as the Bank of England did not change its monetary policy parameters.

The downtrend is still in progress. The corrective growth rates were stopped from the support level of 1.6100. The downward trend line of 1.6180 did not let buyers to go upwards. The trend line testing was followed by the price rebound to the support level of 1.6030.

The price is finding the first support at 1.6030, the next one is at 1.5950. The price is finding the first resistance at 1.6100, the next one is at 1.6180.

There is a non-confirmed and a weak sell signal. The price is on the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen show an upward movement. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a neutral territory. The price is consolidating.

Trading recommendations

After the trend line 1.6030 breakthrough down the way to the support 1.5950 will be opened.