22, May 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British sterling grew up against the dollar in yesterday’s trading. The pound received a support after the inflation publication has shown some growth. As it turned out, the UK annual inflation rate rose in April, but the value was in the forecasts range, therefore, it is likely that pound buying splash was not developed and fleet.

On the daily chart the Pound continues to trade in the rising trend line direction. There is an up strong resistance level 1.6830 breakthrough on the inside daily timeframe.

The price is finding the first support at 1.6860, the next one is at 1.6800. The price is finding the first resistance at 1.6940, the next one is at 1.7000.

There is a non-confirmed and weak sell 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 MACD histogram is in neutral territory.

Trading recommendations

The pair is going upwards. As long as the price is trading in the upward channel buyers remain strong. The bulls’ target is the level 1.7000.