27, June 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The effect from the statements made by M. Carney that weak wage growth in the UK can move to tighten monetary policy at a remote period, continues to press the pound. The growth is moderate. To return its loss the "cable" could after the weak U.S. economy data release.

The price is finding the first support at 1.7000, the next one is at 1.6940. The price is finding the first resistance at 1.7040, the next one is at 1.7080. There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The downward movement will be until the price is under the Kijun-Sen. The MACD histogram is in the positive territory.

Trading recommendations

If buyers cannot break and consolidate above 1.7000 the second time, the downward trend will be continued.

The potential decrease targets are two levels of support: 1.6940, 1.6900 - 1.6895