23, May 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound strengthened against all its major opponents. The currency was supported by fundamental data which contained some positive news for the pound.

The BoE May meeting minutes gave the market reason to believe that the British Central Bank is ready to tighten the policy. The Bank officers were solid when voting for the rate and volume protocols still they differed in the economic situation that shows a strong growth at historically low interest rates.

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.

The price is in 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 positive territory.

Trading recommendations

The strong resistance level 1.6830 break was followed by the pound growth. If it breaks 1.6900 up it will open the way to a May maximum 1.6990.