27, February 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The growth is still limited by the resistance 1.6750, in connection with which there is still the possibility of the renewed downward momentum.
To continue to grow the pair needs to consolidate above the resistance 1.6750, the pair may test and the next important resistance 1.7040.

There is a weak buy signal. The price is in the cloud and above the Chinkou Span.
The upward movement will be in a force as long the price is above the Kijun -sen. The Cloud is growing.
The Tenkan-Sen and the Kijun-Sen are horizontal.

Bollinger Bands indicator points to a redirection change. Its bands are turning down.

MACD is in the positive area. The indicator is slowly decreasing.

Trading recommendations

The approach to the support level 1.6640 was on high volumes. The pair did not test the level and the price immediately rolled up. The rollback accompanied by fixing the upper limit of the downward channel 1.6675. The support level 1.6640 retest is expected. If it is false, the price might bounce up to the 1.6730 and 1.6800.