19, May 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound was influenced by general market sentiment and also like the other majors, at first fell against the dollar, and then strengthened. The pound fixed a slight increase as a session result that can be attributed to greater market confidence in sterling amid the Britain stable economic growth. Britain did not publish any release important for sterling sentiment, so the pound will be influenced by the external events again, first of all happening in the United States, cause the most interesting news package was getting ready there.

The support is 1.6800, the next one is 1.6730. The resistance is 1.6860, the next one is 1.6940.

There is a confirmed and strong sell signal. The price is under the Cloud and under the Chinkou Span.

The downward movement will be continued as long the price is under the Kijun-Sen.

The MACD histogram is in negative territory.

Trading recommendations

The prolonged consolidation development in 1.6755 - 1.6730 is more likely to provide a good signal to the price bounce up.

The bounce potential targets will be the mark 1.6900, this month high 1.6970 retest.