25, August 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound decline has been slowed down. The sterling set a new minimum against the dollar, but its decline result was smaller than before. The economic statistics results did not particularly gladden traders.

The pair’s general correlation is aimed at the American dollar short-term decrease. For a steady growth the buyers need to break above the resistance level of 1.6640.

The price is finding the first support at 1.6570, the next one is at 1.6500. The price is finding the first resistance at 1.6640, the next one is at 1.6700.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

After the trend line 1.6640 breakthrough upward the way to the resistance level of 1.6700 will be opened. Meanwhile we have a downtrend and expect falling to 1.6500.