25, July 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)


The yesterday auction started with the euro replacing the British pound, taking the place of the most vulnerable currency. The sterling fell against all opponents after the BoE minutes publication which does not meet the investors' expectations on the quick recovery rates likelihood increase. The BoE announced the all committee members consensus on the current policy maintaining and uncertainty regarding the first interest rate increase timing.

The fundamental data for GBP deployed the upward trend down. The volume crashed the strong support level breakthrough with trendline rise to 1.7050. Then the pair started the level of 1.7000 testing.

The price is finding the first support at 1.6950, the next one is at 1.6900. The price is finding the first resistance at 1.7000, the next one is at 1.7050.

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. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The price is decreasing.

Trading recommendations

The pair can go to the support level of 1.6950. After breaking it the pair may go to 1.6900. The bounce upwards is possible to the level 1.7050.