30, January 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

A hope that the 4th quarter UK GDP could provoke a volatility growth at the market did not materialize.

The main event are FED’s results; therefore the “cable” will likely trade in the narrow side range, until appear messages from the United States.

The resistance 1.6620 continues to limit the pair growth. There is still a probability that the pair to change the trend from the current levels and will continue a downward correction. The aim of the fall is the support the 1.6200–1.6250.

The northern movement is almost canceled after the pair decreased. The price is above the cloud and below the Chinkou Span.

The downward movement will be in a force as long the price is below the Kijun -sen. Tenkan-Sen is crossing Kijun-sen down.

Bollinger bands is broadening and directed aside.
The MACD histogram is in a positive zone, showing a decrease.

Trading recommendations

The price volumes gradually fall down forming an ease of an upward tendency.
The resistance 1.6640 retest did not happen, despite the exit of strong fundamental data on the GBP (GDP). So the purchasing power begins to wane.

The retest of the resistance level 1.6640 on lowering volumes will be accompanied by a good bounce down, back to the uptrend 1.6550.

The retest of the level with the update of the last week’s maximum is likely to happen. But if the price is back to the level 1.6640, a rebound downward with a support of the resistance level 1.6450 may be expected.