28, July 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

Overview

The British pound was a less attractive asset and having continued its decrease against the dollar and other majors last week. The negative sentiment was caused by the BoE minutes and the UK retail sales in June.

The pound has been in the downward trend for more than one week. The strong support level of 1.7000 breakthrough in the long term opened the way to the level of 1.6950 which has not been worked out yet.

The price is finding the first support at 1.6950, the next one is at 1.6900. The price is finding the first resistance at 1.7000, the next one is at 1.7050.

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

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

Trading recommendations

We expect the level of 101.60 be tested soon. The potential decrease target is the level of support 1.6900.