24, March 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The GBP/USD pair wasn’t an exception and also fell down. The main influencing factor in this case was caused by the emotions and the decisions of the Fed meeting from the press conference J. Yellen.

The first support is 1.6450, the next one is 1.6400. The resistance is 1.6500, the next one is 1.6555.

There is a strong sell signal; the pair is under the Cloud. The price is below the cloud and above the Chinkou Span.

The downward movement will be continued as long the price is below the Kijun-Sen. The Cloud is directed down. The Tenkan-Sen is crossing the Kijun-Sen downwards.

Bollinger Bands indicator points downward. Its bands are broadening.
MACD is in a negative area. The indicator is slowly decreasing.

Trading recommendations

The formation of the prolonged consolidation will lead to a pullback up near 1.6500.

The potential rollback target will be the resistance level 1.6655. Approach to this level is more likely to be accompanied by a consolidation, then the downward trend is expected to continue.