23, July 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

Overview

The general market sentiment spreads its influence on the pound/dollar which closed the trading close to the opening prices against the dollar after the consolidation in a narrow side corridor. We suppose to see the public sector borrowing continued growth in June to 10.5 billion, after 13.3 billion pounds previously. The large loans and the lower orders could add some pressure to the pound in the current circumstances, in the absence of any support risk appetite with the reason for caution in the increasing geopolitical exacerbations view. The GBP/USD downward trend was stopped at the support level of 1.7050.

The price is finding the first support at 1.7050, the next one is at 1.7000. The price is finding the first resistance at 1.7115, the next one is at 1.7160.

There is a confirmed and strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Dead cross”. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The third level retest can cause the price bounce to the range of 1.7100 - 1.7110.