18, September 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The high pound/dollar volatility was caused by the uncertain situation surrounding the recent Scotland independence surveys results. Protests action broke out in Scotland because of the bias towards the referendum preparation.

Buyers came up to the inclined resistance line at 1.6340 that acts as the lower edge of the downtrend channel.

The price is finding the first support at 1.6270, the next one is at 1.6180. The price is finding the first resistance at 1.6340, the next one is at 1.6440.

The price is in the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement.

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

Trading recommendations

We believe the growth will be continued now. The first target is the level of 1.6440.