24, September 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The current GBP/USD pair rise happened for several reasons. In particular, the UK market participants expect the published the mortgage loan publication from BBA.

The pair GBP/USD is corrected to a downward trend line of 1.6440. The fourth time, the pound intends to test the downward trend line of 1.6440.

The price is finding the first support at 1.6340, the next one is at 1.6270. The price is finding the resistance at 1.6440.

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

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

Trading recommendations

The downward trend line 1.6440 retest is more likely to lead to the strong price support level of 1.6270.