19, 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. The pound remained consolidated in a narrow sideways range versus the dollar. Today, the news in England are not expected, the pound will remain under the influence of an external events.

The first support is 1.6600, the next one - 1.6555. The first resistance is 1.6670, the next one is 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

In the medium term the trend remains upward. To continue the downward trend sellers need to break and consolidate below the support level 1.6600. In this case, the way to the level 1.6500 will be opened.