18, June 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound is trading against the dollar near the new high and closed at the trading at the opening prices. The rumors that that the Bank of England will be the first Central Bank which will raise interest rates support the cable. The things that limit the growth are the strong resistance and the situation which develops when the market begins to wait for an important event - in this case it is the Fed meeting that will be over today and where they will decide the monetary policy future.

The May high update 1.6995 has not led to actively continue upward trend. The 1.6990 level retest has led to the price corrective pullback down formation

The price is finding the first support at 1.6940, the next one is at 1.6860. The price is finding the resistance at 1.7000. There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The uptrend movement will be until the price is above the Kijun-Sen. The MACD histogram is in positive territory.

Trading recommendations

In the short term, the potential target for a rollback is the tested rising trend line and a sloping support line 1.6940. If the buyers come across this mark on reduced volumes we will likely to see the rates bounce up back 1.6990 - 1.7000.