28, May 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The dollar strengthened against the pound. The reason is the technical factors that weakened the pair, as we know there was no release yesterday. It is expected that the report of the British Bankers' Association (BBA) will show a reduction in the April mortgage approvals number from 45.2 thousand to 45.9 previously.

There was a strong support level 1.6830 retest last Friday. The sellers once again failed to break below; there was price bounce up. The volumes do not support the correctional pound growth.

Trading recommendations

The price bounced off the strong support level 1.6830, the potential target for growth is the descending trendline 1.6890.

If the pair keeps falling it will reach 1.6830 soon.