14, April 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound fell down slightly versus the dollar, which obviously can be attributed to technical factors, presented the strong resistance levels for the pair GBP/USD. The BoE meeting results announcement, where the monetary policy fate was decided, had no influence on the market sentiment. The Bank of England left its key interest rate unchanged at 0.5%, and the fund bond buying at the same level of 375 billion pounds.

The support is 1.6730. The resistance is 1.6800.

There is a strong and confirmed buy signal. The price is above the Cloud and above the Chinkou Span.

The upward movement will be continued as long the price is above the Kijun-Sen. The Cloud is directed upwards. The Tenkan-Sen and the Kijun-Sen are directed upwards.

The MACD histogram crossed the zero line upwards; the indicator is in the positive zone.

Trading recommendations

The potential buying power remains at the maximum since the major support levels are not punched down. The rebound from 1.6730 to 1.6800 can happen in the future.