21, April 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The bulls keep trying to continue the growth. Obviously, the positive sentiment for the sterling was formed amid a strong economic data that continues to support the "cable" as the market strengthened its expectations that the Bank of England would raise interest rates sooner than it was expected. The pound even tested a new local maximum against the dollar but it finished the day back to the opening prices.

The first support is 1.6730, the next is 1.6670. The resistance is 1.6800.

There is a strong and confirmed buy signal. The price is above the Cloud and above the Chinkou Span.

The upward movement will be continued as long the price is above the Kijun-Sen. The Cloud is directed upwards. The Tenkan-Sen and the Kijun-Sen are directed upwards. Both lines are horizontal.

The MACD histogram is decreasing. The indicator is in the positive zone.

Trading recommendations

The market is not ready to decrease. We should expect a continued growth in the near future. If buyers are able to break above 1.6800, the next target will be 1.6850.

If sellers are able to break it down today we expect it to fall to the rising trendline 1.6670 - 1.6000.