27, March 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound grew versus the dollar. It’s more likely that the support was provided by some technical factors, as the economic data of the Great Britain didn’t have that kind of results, which could be the reason for buying the "cable".

The first support is 1.6500, the next one is 1.6450. The resistance is 1.6600.

There is a strong sell signal; the pair is under the Cloud. The price is in the Cloud and above the Chinkou Span.

The downward movement will be continued as long the price is below the Kijun-Sen. The Cloud is directed down. The Tenkan-Sen is crossing the Kijun-Sen downwards.

MACD histogram is in a negative area, but above its signal line, it continues growing showing a buy signal.

Trading recommendations

The nearest resistance is 1.6555, which is located near the descending trend line. The retest of the 1.6555 mark is more likely to lead to a rebound of the price downward. The potential rebound target is the support level 1.6500.

The breakthrough and the fixing below 1.6500 will lead to a confident continuation of the bearish trend. The main goal in this case is the level 1.6450.