24, October 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound came also under pressure against the dollar. The first reason for investors’ frustration is the Bank of England last meeting “minutes”. The "minutes" pointed to the British regulator tendency to soft policies and pushed the pair GBP/USD down.

The sellers managed to break below the support level of 1.6100 amid the fundamental factors.

The volumes indicate the clear bears’ weakening. But as the trade is still in the downtrend line direction - we cannot talk about the upward direction.

The price is finding the first support at 1.6030, the next one is at 1.5950. The price is finding the first resistance at 1.6100, the next one is at 1.6180.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement.

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

Trading recommendations

The potential decrease target is the support level of 1.5870.