19, February 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound has made another leap up against the dollar in the early session on Monday and reached the new local maximums. However, the "cable" could not keep the position and rolled down due to strong opposition resistance, which resulted in a loss on the day.

Rising above the resistance 1.6750 was short-lived, which significantly increases the probability of formation of correction towards 1.6200.

There is a strong and confirmed buy signal. The price is above the cloud and above the Chinkou Span.
The upward movement will be in a force as long the price is above the Kijun -sen. The Cloud is growing.

Bollinger 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 approach to 1.6800 was accompanied by a rolling back down. Either the level of support 1.6640 or rising trend line 1.6660 will serve as a potential target rollback.

Otherwise the price may grow to 1.6800.