23, October 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The US good statistics was one of the main pound weakening reason. The technical factors influenced the pound as well. The growth was caused by the strong resistance level where the pair pound/dollar is now.

The Bank of England last meeting minutes will be published where they discussed the monetary policy future.

The pair GBP/USD is waiting the fundamental data. We expect one of the two important levels break through: 1.6180 and 1.6030 amid these data.

The price is finding the first support at 1.6030, the next one is at 1.5950. The price is finding the first resistance at 1.6100, the next one is at 1.6180.

There is weak sell signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows an upward one. The upward movement will be until the price is above the Cloud.

The MACD histogram is in a positive territory. The price is decreasing.

Trading recommendations

We expect the level of 1.6030 break that will open the way to 1.5870.