24, January 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

News of the economic plan continues to help sterling to retain leading market positions. At the last session the pound recorded growth against all the majors amid good economic data. The pair came close to resistance 1.6620. Its overcome will allow testing the key resistance at 1.6750.

The northern movement is canceled after the pair broke the cloud downwards. The price is below the cloud and above the Chinkou Span.

The downward movement will be in a force as long the price is below the Kijun -sen. Tenkan-Sen and Kijun-sen are directed to the North.

Bollinger bands indicator is broadening and directed upwards.
The MACD histogram is in a positive zone, showing a growth.

Trading recommendations

The British pound came on rising volume to the resistance level. A retest of the level 1.6555 is quite expected. A breakthrough 1.6625 upwards will point to a continued growth.