23, June 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound continued its upward march against the U.S. dollar and reached its highest level since 2008. The pound support continues to come from the view that the BoE will be the first Central Bank, which will raise rates. Statements by "Old Lady" representatives about the need to begin to tighten the policy were softer than expected, the difference between the Fed position and the BoE supports the sterling.

The price is finding the first support at 1.7040, the next one is at 1.7000. The price is finding the resistance at 1.7080.

There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The upward movement will be until the price is above the Kijun-Sen.

The MACD histogram is in a positive territory.

Trading recommendations

The nearest correctional wave target is the support level of 1.7000, or rising trendline 1.6980 - 1.6990. The retest is more likely to be accompanied by the consolidation. We expect the upward trend continuation.