14, January 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British currency was under strong pressure on the European session after the “Islands” statistics issued weak results on industrial production.

The northern movement is canceled after the pair broke the cloud downwards. The price is below the cloud and above the Chinkou Span.

The downward movement will be in a force as long the price is below the Kijun -sen. Kijun –sen and Tenkan-Sen are directed downwards. Tenkan-Sen is crossing Kijun-sen down.

Bollinger bands indicator is broadening.
The MACD histogram is in a negative zone, showing a decrease.

Trading recommendations

Breakthrough of the level 1.6465 was on the rising volume, this is a good signal for the British pound growth.

The nearest growth target is the intermediate resistance level 1.6525.