30, July 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The UK news vacuum and the news expectations from the United States impacted the GBP/USD during the trading day. The sterling did not change the range which had been formed in previous sessions. The pound most likely will continue to "drift" against the dollar due to the U.S. news expectations. The sellers could update the last week minimum 1.6950 to continue the downward trend. The side corridor formed within the daily chart on the levels of 1.7000 – 1.6960 was broken.

The price is finding the support at 1.6900. The price is finding the first resistance at 1.6950, the next one is at 1.7000.

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 downward movement. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The price is going down.

Trading recommendations

The main price target is the support level of 1.6900.