21, March 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British Newsflow didn’t harm the pound and even provoked a leisurely growth of the pound versus the dollar. The UK Finance Minister D. Osborne announced the budget expectations of a faster economic growth and the absence of the government's intentions to slow down the program to reduce the deficit.

The first support is 16500, the next one is 1.6450. The resistance is 1.6555.

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

The downward trend line 1.6655 retest was accompanied by a good bounce down. The main purpose of the rebound is the inclined support line 1.6500.

To continue the downward trend the sellers need to break and consolidate below the support 1.6500. Due to this breakthrough the way to 1.6500, 1.6400 marks will be opened.