17, March 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

For the first time the British pound was in a wave of purchases and showed a fairly stable growth. However, to become the first session which ended with positive results for the pound, the Friday's trading was negative. Draghi’s comments on the possible use of non-standard monetary policy measures in the euro area put pressure on the "cable", forced it to return to the opening prices.

The support is at 1.6600. The first resistance level is 1.6670, the next one is 1.6750.

There is a strong sell signal; the pair is under the Cloud. The price is below the cloud and above the Chinkou Span.

The downward movement will be continued as long the price is below the Kijun-sen. The Cloud is directed down. The Tenkan-Sen is crossing the Kijun-Sen downwards.

Bollinger Bands indicator points downward. Its bands are broadening.
MACD is in the negative area. The indicator is slowly decreasing.

Trading recommendations

The British pound continued the downward trend after a pullback up. The falling was accompanied by a high volume.

To confirm the downward trend you need to wait for the strong support level 1.6600 break down. After this breakthrough, the way to the lower bound channel 1.6500 will be opened for sellers.