20, June 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK market's reaction after the Fed minutes publication was similar to the one at other basic tools - the pound slightly rose against the dollar after multidirectional movements. However, the increased volatility even in the European session happened because of the last BoE meeting published protocols.

The British pound broke the 1.7000 strong resistance the second time. If the first retest happened at the lower volumes, the second one occurred at the strong ones.

The price is finding the first support at 1.7000, the next one is at 1.6940. The price is finding the first resistance at 1.7040, the next one is at 1.7080.

There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The upward movement will be until the price is above the Kijun-Sen.

The MACD histogram is in positive territory.

Trading recommendations

Currently, the price is trading above the resistance level 1.7000 which has already become the support.

The potential growth targets are the resistance levels: 1.7050, 1.7100.