14, February 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound has been in the lead since Wednesday. Sterling rose after the Bank of England announced an increase in its forecasts for economic growth.

The pair rose sharply to the resistance 1.6620. Sustainable consolidation above it will allow the pair to go out to the key resistance 1.6750. However, the further growth can be difficult and there is a high probability of a trend reversal on the way to 1.675, and after that the pair will be aimed at testing the support at 1.6200-1.6280.

There is a strong and confirmed buy signal. The price is above the cloud and above the Chinkou Span.
Tenkan-Sen is crossing Kijun-sen upwards. The upward movement will be in a force as long the price is above the Kijun -sen.

Bollinger bands indicator is broadening being directed upwards.
The MACD is in a positive zone, showing a growth.

Trading recommendations

Not without the help of a fundamental support the British Pound continues to actively grow up.
The resistance 1.6640 break in the short term will open the way to 1.6700. After that a retest of the circular level 1.6800 is possible.