28, August 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound also fell against the dollar, but new minimums were not tested. Like the euro, the pound has increased pressure during the American session following the U.S. economy published data. However, the UK news had a bleak character.

The four day price consolidation above the resistance level of 1.6570 was followed by the price bounce downward. The bouncing was followed by the background of the increased volume and fell to the minimum - 1.6545.

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 and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

After the trend line 1.6570 breakthrough down the way to the support 1.6500 will be opened.