27, August 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound cannot break above the resistance level of 1.6570 for the fourth day. The consolidation below is followed by the sales volumes decrease which suggests the possible price bounce downward.

The price is finding the first support at 1.6570, the next one is at 1.6500. The price is finding the first resistance at 1.6640, the next one is at 1.6700.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a downward one. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The potential growth targets are the resistance levels: 1.6640, 1.6700. The approach to these lines may lead to a price rebound down. The potential rebound target is the level of support 1.6500.