17, January 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British currency also fell versus the dollar yesterday. There was almost no news from the UK, the performance of M. Carney had no impact on the market and the pound was traded under the influence of external information, in particular of the American statistics.

The situation remains the same. The growth will be continued from the current levels, if the fifty-day SMA limits the reduction. The break above a minor resistance 1.6620 and testing key resistance 1.6750 remains the main target of the growth.

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 down. Tenkan-Sen is crossing Kijun-sen downwards.

Bollinger bands indicator is broadening.
The MACD histogram is in a negative zone, showing a decrease.

Trading recommendations

The nearest target is the support level 1.6320. If the price does not stop at this level, the decrease to 1.6245 is expected.