22, April 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound has remained almost the only world currency, which methodically strengthened versus the U.S. dollar. The currency hit a new maximum mark on the unemployment rates in the UK which was lower than it was expected last week. However, the pound growth rate is obviously slowed down.

The British pound pullback occurred due to the volumes declining.

The support is 1.6730. The first resistance is 1.6800, next is one 1.6850.

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

This instrument remains in the confident uptrend. The pullbacks against the trend, are a good sign to enter the market.
We expect a growth in the near future. If buyers can break above 1.6800 the price may grow to 1.6850.

If sellers broke it down it would fall to the rising trendline 1.6670 - 1.6000.