29, July 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

Overview

The British pound was traded in a narrow sideways range against the dollar and ended the day slightly lower, almost at the opening prices. Obviously, the unsatisfactory UK retail sales results in June, presented last Thursday, continued to put pressure on the sterling and as the technical factors caused the strong support for the GBP/USD supported the impulse. The British pound has been actively decreasing against the U.S. dollar for the last two weeks. The price fall touched the strong support level of 1.7000, approached at lower volumes which means the downward trend softening.

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 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 consolidating.

Trading recommendation

After the trend line 1.6950 breakthrough down the way to the support 1.6900 will be opened.