29, October 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pair GBP/USD, grew up at the yesterday's trading amid the weak activity. There was no reason for the pound sales and the UK economic statistics did not give any neutral information, the weak US economic data supported both the “cable” and the euro.

The corrective pound growth is low against the US dollar. Buyers has broken through and fixed above the downward trend line of 1.6100 at the low volumes.

The price is finding the first support at 1.6100, the next one is at 1.6030. The price is finding the first resistance at 1.6180, the next one is at 1.6270.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Golden Cross”. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

If the price fixates below the support level of 1.6030, it may continue the downward trend in the short term. The potential target is 1.5950.