15, April 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound also strengthened versus the dollar most of the session last week, but ended its rally earlier. The pound began to decline on Thursday and continued it on Friday. The rising pound popularity was provoked by the industrial production strong data which was much better, than it was expected. This “starter” and “uncertain” Fed protocols provided the pound buying. The technical factors, presented by the strong resistance levels for the pair GBP/USD, stopped the “bulls” for “cable”.

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 is decreasing. The indicator is in the positive zone.

Trading recommendations

The pair is correcting. If it keeps falling it will go to 1.6670. The rebound from 1.6730 to 1.6800 can happen in a short term.