16, July 2014

GBP/USD (a 4-hour chart)

GBP/USD (4-х часовой график)

General overview

The pound was traded lower against the dollar and closed the session with a sufficiently solid fall, dropping to a new neither intraday nor monthly minimum. Perhaps the negative reaction was caused by the increased concerns over the GDP results in the second quarter after industrial production and construction weak data release last week. In addition, the pound sales could be just arrangements for the inflation release.

The price is finding the first support at 1.7115, the next one is at 1.7050.

The price is finding the first resistance at 1.7160, the next one is at 1.7220. There is a non-confirmed and weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The upward movement will be until the price is above the Cloud.

The MACD histogram is in a neutral territory.

Trading recommendations

The downward bounce potential target is 1.7050. If the level of 1.7115 retest is false the trend is more likely to go down to 1.7050.