30, May 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound fell against the "dollar" by almost 100 points. The negative mood on the British currency, afforded on Tuesday, stretched on Wednesday and Thursday trading, while the "islands" economy data, which wasn’t so much pressured it additionally, because it represents the disposal results led to an apparent disappointment.

The continued upward trend for the British pound was stopped by the rising trendline 1.6785 breakthrough and the downward support level 1.6760.

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

Please be advised to go short. Our targets are 1.6670 and 1.6600.