29, May 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound is the most vulnerable currency this week. The falling market mortgage reports have pushed sterling to the sale which was then supported by the U.S. economy data. According to the report the British Bankers' Association BBA approvals for mortgage fell in April to 42.2 thousand from 45.9 thousand and the expected reduction to only 45.0 thousand.

For the fifth time the British pound corrected to the week rising trendline 1.6790 and broke it.

The price is finding the first support at 1.6670, the next one is at 1.6600. The price is finding the first resistance at 1.6730, the next one is at 1.6800.

The price is below the Cloud and above the Chinkou Span. The downward movement will be continued as long the price is under the Kijun-Sen.

The MACD histogram is in negative area. The indicator is decreasing showing the sell signals.

Trading recommendations

The pair is decreasing. The indicators confirm a downward movement. The GBP/USD continued the downward movement on a high volume. The potential targets for the decrease are 1.6670 and 1.6600.