26, March 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

No important news wasn’t published yesterday, and the pound was influenced by the general market mood which took a pause. The lateral movement was briefly interrupted the pound growth as the dollar growth impacted it too. However, the rise up was offset by a quickly returning to their original positions, and the "cable" gave a neutral result versus the dollar.

The first support is 1.6450, the next one - 1.6400. The first resistance is 1.6555, the next resistance 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 histogram is still in negative area, but above its signal line, it continues to rise up smoothly showing a buy signal.

Trading recommendations

Due to a possible rebound trading volumes show a forming divergence. If the support level 1.6450 isn’t knocked up, we should expect a short-term growth for the descending trend line 1.6555.

If 1.6555 is broken up, that will open the way to 1.6600, 1.6670.