21, October 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound got some pressure yesterday after the Bank of England Chief Economist E. Haldane speech where he said that he was "more gloomy" about Britain’s economic forecast than before and the UK interest rates should stay lower for longer without jeopardizing the inflation target which is 2%.

The upward correction volatility is gradually decreasing. The price is likely to rebound downwards.

The price is finding the first support at 1.6100, the next one is at 1.6030. The price is finding the first resistance at 1.6180, the next one is at 1.6270.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show an upward movement and form a “Dead Cross”. The upward movement will be until the price is above the Cloud.

The MACD histogram is in a positive territory. The price is growing.

Trading recommendations

The downward bounce potential target is 1.5870.