14, May 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

British pound at yesterday's trading was less popular than the dollar and fell a little against it. There were no economic news, the market probably is trying to trade on the forecast basis. The forecasts promise good data the next week that can support the “cable”. These reports are employment and wages releases. The market is looking forward to the Bank of England's inflation statement.

The support is 1.6800, the next one is 1.6730. The resistance is 1.6860, the next one is 1.6940.

There is a non-confirmed and weak sell signal. The price is under the Cloud and under the Chinkou Span.

The downward movement will be continued as long the price is under the Kijun-Sen.

The MACD histogram is pointing down, indicating the current downtrend movement rates.

Trading Recommendations

The volumes show the divergence. The downward trend easing is more likely to lead to the consolidation near the mark 1.6800. 1.6800 gives additional support to a rising trendline which is located directly near the level.