24, April 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Last week's resistance level 1.6835 stopped the British pound growth against the U.S. dollar. We see a long consolidation. The market waits for the GBP fundamental data release (the retail sales index and retail sales report).

MACD histogram is still in the positive zone. The indicator gives a signal to buy the pound (GBP).

Trading recommendations

The current situation can work in two ways: the pair can break the resistance level 1.6835 up with a further growth continuation to 1.6900; the second scenario is the rebound from 1.6835 to 1.6760 uptrend line from which the price is expected to grow up.