21, February 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound actively responded to the news appearing on the last session.
The pair continues to correct, but very restrained, increasing the likelihood of re-growth from the current levels with the purpose of fixing above the resistance 1.6750 and subsequent growth to the next important resistance 1.7040.

There is a strong and confirmed buy signal. The price is above the cloud and above the Chinkou Span.
The upward movement will be in a force as long the price is above the Kijun -sen. The Cloud is growing.

Bollinger Bands indicator points to a northern movement. Its bands are turning showing a lateral movement.

MACD is in the positive area. The indicator slowly began to decline, indicating that the bullish sentiment gradually fades.

Trading recommendations

The pound sterling fell to the previous peak – to the support level 1.6640. As additional support we have a rising trend line 1.6670.

The 1.6730 breakthrough will helps buyers to approach the being tested resistance level 1.6800.