17, July 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Technically, the British returned to the market leaders and became one of the majors on the yesterday's session having made some profit against the dollar. The sterling found support from the newly arrived UK economic data. The economic statistics publication announced the UK inflation accelerating and added the belief to investors that the BoE would be forced to raise rates before the end of this year

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

We expect the 1.7160 line break that will open the way for the buyers to 1.7220.