23, September 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound rose after the Scotland referendum results which showed that the Scots do not want to separate from the UK. The pair then fell again.

The corrective wave from 1.6440 was stopped by the descending trend line. Approach to the price trend line was followed by a deep test in an attempt to break above this resistance. However, the "buyers’ exploits" came to an end and the pair decreased to the level of 1.6340 area.

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 above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show 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 consolidating.

Trading recommendations

The price is likely to go to the downward trend line 1.6270.