27, October 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

As the euro the British pound traded mixed last week. The UK news confirmed the negative trends that could cause the increased pressure on the "cable". However, the pound demand was slightly better than it was expected, presented by the retail sales data and was the leveling point that supported the pound against with the US dollar.

There were the British pound negative fundamental data the whole last week. But against this background its price reduction is at the lower volumes and without much volatility.

At present the trade is above the support level of 1.6030 that was broken through, but without the further fixing price.

The price is finding the first support at 1.6030, the next one is at 1.5950. The price is finding the first resistance at 1.6100, the next one is at 1.6180.

There is a confirmed and a strong buy signal The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement. The upward movement will be until the price is above the Cloud.

The MACD histogram is in a neutral territory. The price is growing.

Trading recommendations

After the trend line 1.6030 breakthrough down the way to the support 1.5950 will be opened.