26, September 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound remains under pressure, despite the attempts to recover. Meanwhile, the increase above 1.6440 can not be excluded against the empty calendar of British events. Therefore, the investors pay their attention to the American statistics which forms the course dynamics.

The rates consolidation formed below the trend line at 1.6340 led to the downward price rebound. In the short term we expect the level of 1.6270 breakthrough, the lower boundary of the upward channel.

The price is finding the first support at 1.6270, the next one is at 1.6180. The price is finding the first resistance at 1.6340, the next one is at 1.6440.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a downward movement and form a “Dead cross”.

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

Trading recommendations

We expect the 1.6270 line break that will open the way to 1.6180.