18, March 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

British pound grew up versus the dollar last Friday, but it was less popular than the euro and returned a much smaller part of the loss on Thursday. Perhaps, the pound buying was limited due to the emergence of the foreign trade "islands", worse than it was expected in January

The support is 1.6600. The first resistance is 1.6670, the next one - 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. Both lines are horizontal.

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

Trading recommendations

The price has been consolidated at 1.6580 for four days, from which it is more likely to expect a rebound up. The main target of the rebound will be the resistance level 1.6760. The break of this level will lead up to the medium-term, continued “bullish” trend. The immediate goal is 1.6800.