24, July 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound left a narrow. Obviously, the market wasn’t in a hurry to take a decision on the pair, expecting information from the BoE last meeting minutes which can show - the power balance change among the Monetary Committee members on the policy tightening issue.

The third retest of the support level of 1.7050 for the past three days shows the sellers’ great interest to continue the downward trend. However, the upward trend is still relevant due to the fact that the retest was followed by permanent bounces up.

The price is finding the first support at 1.7000, the next one is at 1.6950. The price is finding the first resistance at 1.7050, the next one is at 1.7115.

There is a confirmed and strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement and form a “Dead cross”. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The price is going down.

Trading recommendation

The potential growth target is the resistance level of 1.7115.