26, February 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

It is possible that the correction is over, and from current levels the uptrend will consolidate above the resistance 1.6750 and continue growing to the next important resistance 1.7040.

Bounced off the level 1.6620, the British pound fell to the support level 1.6670 having broken it down. The immediate support is the level 1.6470.

There is a weak buy signal. The price is in 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.
The Tenkan-Sen and the Kijun-Sen are horizontal.

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

The upper bound of a downtrend channel 1.6685 is a good. This level false retests would lead to the continuation of a downward price correction. The potential target will be 1.6550.