18, February 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British currency was the growth leader against the dollar, fixing up the day almost 100 points.
The pair broke the key resistance 1.6750. This opened the way for a growth to the next important resistance 1.7040. However, the market overbought and we expect trend reversal down and formation of correction from virtually any level towards 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 growing trend medium volumes form divergence, indicating a pause in a growth. If the price breaks 1.6750 up, we should consider 1.6800 as the next target level.

Otherwise the price may bounce down to 1.6670 and 1.66.