20, March 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound fell down versus the dollar in yesterday's trading and the reason is called the processes in mergers acquisitions. The British economic data wasn’t published, we can only recall the speech of the Bank M.Karni, who added some confidence to the market, that the BoE tightening in policy in the near future will not repeat, as well as reports of the reshuffle in the main UK bank. These news didn’t arouse a serious response on the market.

The first support is 1.6500, the next one - 1.6450. The first resistance is 1.6555, the next one is 1.6600.

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.

Bollinger Bands indicator points downward. Its bands are broadening.
MACD is in a negative area. The indicator is slowly decreasing.

Trading recommendations

We support the idea of a downward trend. Yesterday’s falling happened on high volumes that is directing the pair deep to 1.6450.