15, May 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The market did not try to strengthen the pound against the dollar. In the complete absence of "islands" economic information, sterling was influenced by «for dollar" general market sentiment and decreased against the dollar as the majors rest.

The market is waiting for the Britain employment report and the publication of the Bank of England’s inflation report.

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 confirmed and strong 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

From a technical point of view, the price came out of the downward channel and wasn’t able to break below 1.6830 strong support level, the British pound sterling growth will continue. 1.6900, 1.6990 levels will act as potential growth targets.