26, May 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound also weakened against the dollar, and also, as the euro had not gone beyond the previously formed by a side corridor. As we see the pressure was from the weak data that were worse than expected.

The second resistance level retest 1.6910 was followed by the corrective rates down bounce. The price rebound fell to the rising channel bottom 1.6860. At this level it continues trading in real time.

The price is finding the first support at 1.6800, the next one is at 1.6730. The price is finding the first resistance at 1.6860, the next one is at 1.6940.

The price is in the Cloud and above the Chinkou Span. The downward movement will be continued as long the price is under the Kijun-Sen.

The MACD histogram is in positive territory.

Trading recommendations

Based on the current situation, the price movement can go in two ways:

- The corrective pullback down continuation to 1.6830.
- The price growth from the current position to the resistance level 1.6910.