25, March 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The situation with the pound was similar to what happened with the euro - the same characteristic correction sideways versus the dollar. However, in this case there was a slight pressure sales and the day was ended with a decrease.

The first support - 16450, the next one - 1.6400. The resistance is 1.6555, the next one is 1.6600.

There is a strong sell signal; the pair is under the Cloud. The price is below the cloud and above the Chinkou Span.

The downward movement will be continued as long the price is below the Kijun-Sen. The Cloud is directed down. The Tenkan-Sen is crossing the Kijun-Sen downwards.

MACD is in a negative area. The indicator is slowly decreasing.

Trading recommendations

The decrease volumes remain on the three-month level. This suggests that sellers are still strong.
If the rising trend line 1.6450 is broken down the bearish trend will be strengthened. The main targets will be the marks 1.6400, 1.6350, 1.6260.