17, February 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

British currency continues to grow versus the dollar. The main supporting factor for the pound is a positive attitude, called content previously submitted report of the Bank of England's inflation and the statements made by the VOE M.Karni.

The pair left the resistance 1.6670 and in the short term is expected to test the key resistance 1.6750. However, further growth can be difficult, and there is a high probability of a trend reversal on the way to 1.6750. At the same time, a break above resistance 1.6750 opens the road to another important resistance 1.7040.

There is a strong and confirmed buy signal. The price is above the cloud and above the Chinkou Span.
Tenkan-Sen is crossing Kijun-sen upwards. The upward movement will be in a force as long the price is above the Kijun -sen.

Bolinger Bands indicator points to a northern movement. Its bands widen to an upward direction.

MACD is in the positive area. The indicator slowly began to decline, indicating that the bullish sentiment gradually fades.

Trading recommendations

The break of the resistance 1.6670 was on declining volume. If the price does not bounce down we can expect a consolidation and a continued growth. The potential targets of a growth will be 1.6700, 1.6750.