21, May 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound/dollar is not an exception, and also was closed with neutral results after range sideways consolidation. There were several news from the "islands", the only worthwhile message was received from Rightmove and indicated that the housing market prices continue to rise - the price index in May recorded 3.6 % m/m, 8.9 % y/y after 2.6 % m/m, 7.3 % y/y.

The support is 1.6800, the next one is 1.6730. The resistance is 1.6860, the next one is 1.6940.

There is a confirmed and weak sell signal. The price is under the Cloud and under the Chinkou Span. The upward movement will be continued as long the price is above the Kijun-Sen.

The MACD histogram is in neutral territory.

Trading recommendations

The pair is going down. The first target is 1.6755. The second target is 1.6670.
For the growth the target is 1.6970.