26, June 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

There pound was very vulnerable the other day. The currency fell against the dollar and the euro after Mark Carney mentioned his plans about the bank policy. Speaking in parliament, the regulator expressed his concerns about the slow growth of wages in Britain, saying that perhaps it would affect the plans of the Central Bank regarding interest rates.

The price is finding the first support at 1.6940, the next one is at 1.6860. The price is finding the first resistance at 1.7000, the next one is at 1. 7040.

There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The upward movement will be until the price is under the Kijun-Sen. The Cloud is directed upwards.

The MACD histogram is in the positive territory. The indicator is descending.

Trading recommendations

The pair direction is not certain. The pair is near the cloud boundary so we can expect the bounce up. If the GBP/USD enters the cloud the buy signal will be weakened and the price might go down to 1.6940.