22, August 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound continues to lose positions against the dollar. And, despite the fact that the volume is gradually reduced down, the downward trend is still in force.

There was a short-term growth to the resistance level of 1.6640. The level retest was followed by a price rebound down. At the same time, the sellers managed to come close the downtrend channel 1.6570 lower bound.

The price is finding the first support at 1.6570, the next one is at 1.6500. The price is finding the first resistance at 1.6640, the next one is at 1.6700.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The price is fixing.

Trading recommendations

We believe the downward movement will be continued now. The first target is the level 1.6500.