16, May 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound came under pressure in trading because of British economy data which gave a reason for selling sterling, as well as information suggesting the monetary policy fate on the "islands". The Bank of England's quarterly inflation report dispelled hopes to raise interest rates until the 1st quarter of 2015, despite the fact that the indicators continue to show the growth.

Britain news package is empty again; sterling will trade under the external information influence and is likely to continue to decrease against the dollar since the encouraging news on dollar inflation may appear in the United States.

The support is 1.6730, the next one is 1.6670. The resistance is 1.6800, the next one is 1.6860.

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

The pressure on GBP/USD remains the same, but the pair’s growth attempts limited at 1.6787 resistance. The 4 -hour chart showed oversold signs, which theoretically could lead to some bounce up. However, increase attempts towards 1.6800-1.6820 can be used to open short position.