20, October 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound continued its growth against the US dollar that started on the Wednesday trading and then started a consolidation. The UK economic news was not published and the increased pound interest could be based on the fact that the Bank of England tightening policy is opposed to the ECB and the Bank of Japan policies that can be our guidance in an uncertainty period.

The bulls were able to break through above the strong resistance level of 1.6030. The level breakthrough occurred on the high volume, but the price growth was not long term, soon the pair consolidated.

The price is finding the first support at 1.6030, the next one is at 1.5950. The price is finding the first resistance at 1.6100, the next one is at 1.6180.

The price is in the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Dead Cross”.

The MACD histogram is in a neutral territory. The price is consolidation.

Trading recommendations

The downward trend line retest is more likely to lead to the price support levels 1.6030, 1.5950 return.