29, September 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The GBP/USD fell at the end of the last week. Before this the Bank of England Governor Mark Carney made it clear that there was a high likelihood for raising interest rates in the foreseeable future that deterred from the further pound/dollar decrease and contributed to the pair recovery to 1.6340. Nevertheless, it should be noted that the prospects of interest rates rise will not have a supportive effect on the former British currency that should alert the bulls for it.

The price is finding the first support at 1.6180, the next one is at 1.6100. The price is finding the first resistance at 1.6270, the next one is at 1.6340.

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

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

Trading recommendations

The price is directed down. We advise to long positions with the first target – 1.6100, the next one is 1.6030.