19, June 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British Sterling was under pressure from the dollar yesterday. By the end of trading the pound was able to neutralize some of its losses, but the pair session result was not on the British currency side. The reason for selling the pound was performed by the unexpectedly weak data on the UK inflation. The information about the U.S. Federal Reserve decisions will impact the British too.

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

The rising trendline 1.6960 breakthrough was met by an intermediate support level 1.6940. The price went up to the level at the reduced volume, forming a small retest with a consolidation.

It is likely that consolidation at 1.6940 support will be continued. If the sellers are not able to break below 1.6940 the price will bounce up.

The potential bounce target is the resistance level 1.7000, then price will approach to 1.7050, 1.7100.