25, September 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The sterling slightly fell down. Earlier the pound fully compensated its losses.

Optimistic prospects for the Bank of England future actions give a support to the pound rate, as well as the political situation stabilization after the referendum on Scottish independence.

The British pound tried to rise to the downward trend line of 1.6440. The short-term increase was followed by the lower volumes and the price was immediately falling down.

The price is finding the first support at 1.6340, the next one is at 1.6270. The price is finding the resistance at 1.6440.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement and form a “Dead cross”. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

We suppose the pair will go to 1.6340 first. Having overcome the first target the price might go downwards to 1.6270, 1.6180.