15, January 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound was the most vulnerable currency at yesterday's session. Selling the pound leveled all its last Friday gains and almost returned to levels at which it was a week ago. The currents doubts about recovery processes are not so encouraging than they used to be harming the British currency in times of uncertainty are pushing the market to sales.

The rising trendline 1.6340 is a sufficiently strong resistance from which the pair is likely to rebound.

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 horizontal. 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. Still if the pair returns to a decrease it will go to 1.6313.