28, February 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The UK Central Bank and the UK does not worry about the pound and it does not bear the difficulties for the British exporters.

The pound fell against the dollar in yesterday's trading, but the losses of the sterling were minor.

This situation has not changed. The growth is still limited by the resistance 1.6750, it is still possible the return to a downtrend.

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 direction change. Its bands are turning down.

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

Trading recommendations

The volumes are low near the support level 1.6640.

We recommend to sell after the price breaks through and consolidates below the support level 1.6640. This breakthrough opens the way to the 1.6550.