25, February 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pair continues a correction that increases the growth resumption likelihood from the current levels to consolidate above 1.6750 and subsequent growth to the next important resistance 1.7040.

There is a weak buy signal. The price is in growth the cloud and above the Chinkou Span.
The upward movement will be in a force as long the price is above the Kijun -sen. The Cloud is growing.

Bollinger Bands indicator points to a redirection change. Its bands are turning down.

MACD is in the positive area. The indicator is slowly decreasing.

Trading recommendations

For a long time the price could not break below 1.6640.

The immediate goal is the lower bound of a downtrend channel 1.6580. This level retest can return the price back to 1.6640.