27, January 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound fell down as other currencies. The central Bank has been waiting such a turn as a strong pound is a risk to an economic recovery.

The pair managed to overcome the resistances 1.6555, 1.6500, 1.6470.

The northern movement is almost canceled after the pair decreased. The price is above the cloud and below the Chinkou Span.

The downward movement will be in a force as long the price is below the Kijun -sen. Tenkan-Sen and Kijun-sen are directed to the South.

Bollinger bands indicator is broadening and directed aside.
The MACD histogram is in a positive zone, showing a decrease.

Trading recommendations

The pair still continues an ascending trend. The main target of the growth is the level 1.6705.

But, as we see the growth is almost canceled. Now we are waiting when the pair shows itself. To continue a decrease the pair needs to break through the cloud down. This correction may last to 1.6150 or possibly lower.