17, October 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound has also increased against the US dollar. Buyers were able to return the price to the resistance level of 1.6100. In this case the price return was amid the very high trading volume.

Despite the fact that the high volume appeared within the bullish trade, the trend is still downward in the medium term. There can be formed the small price correction to the resistance level of 1.6100 in the short term. Or it will be the next descending trend line retest of 1.6180.

There is a confirmed and a strong sell signal. The price is below the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement and form a “Dead Cross”. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The price is decreasing.

Trading recommendations

The decrease shall be continued. The targets are 1.5950 and 1.5860.