14, March 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

On the last session the British currency was under the pressure. The lack of important events and news leaves the pound under the influence of external news and general market sentiment.

The first support level is 1.6600. The nearest resistance level is 1.6670, the next - 1.6790.

There is a strong sell signal; the pair is under the Cloud. The price is below the cloud and above the Chinkou Span.

The downward movement will be continued as long the price is below the Kijun-sen. The Cloud is directed down. The Tenkan-Sen is crossing the Kijun-Sen upwards.

Bollinger Bands indicator points downward. Its bands are broadening.
MACD is in the negative area. The indicator is slowly decreasing

Trading recommendations

There was a strong support 1.6600 breakdown. The volumes are high. We believe the decrease will be continued. The first target is 1.600, after consolidation at this level we expect the pair to continue falling to 1.6555.

A potential target for a corrective rally is a lower bound uplink 1.6700 - 1.6710.