22, September 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound fell at the end of last week trading. Before this the pound rose to the two-week high against the US dollar and the two-year euro rise occurred due to the Scottish independence referendum preliminary results which showed that the Scots majority voted against the separation.

The British pound is recovering after a two-month price decline. This time the buyers could to break above the resistance level and the downward trend line of 1.6440. The breakthrough occurred on the increased volume. At the end of the trading the pair decreased below the level of 1.6340.

The price is finding the first support at 1.6270, the next one is at 1.6180. The price is finding the first resistance at 1.6340, the next one is at 1.6440.

There is a confirmed and a weak buy signal. The price is on the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. 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

We suppose the pair will go to 1.6340 first. Having overcome the first target the price might go upwards to 1.6440.