19, August 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound has been "trodden" in one place and closed against the dollar on the opening prices. Investors have not been impressed by the fact that the second GDP estimate for the 2nd quarter was revised upwards to 3.2% y/y from 3.1% y/y.

The price broke the level of 1.6710 at high volumes. After the support level break down the price shows a weak volatility.

The price is finding the first support at 1.6700, the next one is at 1.6640. The price is finding the first resistance at 1.6770, the next one is at 1.6840.

There is a confirmed and strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen are horizontal. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The indicator is growing.

Trading recommendations

We expect the resistance level of 1.6770 retest. After that the price will bounce down to continue the further bearish trend to 1.6640.