26, August 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound was steady against the dollar and closed the session almost at opening prices. There were not any thing interesting from the newsflow, the pound was under the external information influence and the most important driver for the market could be the technical factors presented by the strong support. The British pound trading has been continuing in the narrow downward channel direction for the second month.

The dollar confirmed strengthening against the GBP has been stopped at the support level of 1.6570, which came at a reduced price volumes.

The price is finding the first support at 1.6570, the next one is at 1.6500. The price is finding the first resistance at 1.6640, the next one is at 1.6700.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a downward movement. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The price is consolidating.

Trading recommendations

We expect a bounce upwards. The upward bounce potential target is 1.6640.