30, September 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound remained under pressure. The Bank of England Governor Mark Carney said that the time for the interest rates rise was getting closer and also noted that the date had not yet specified as it depended on the economic data.

There was the support level of 1.6270 breakthrough that confirms the downward trend which will now play the resistance role. Besides the breakthrough, the bears returned the price to the downward trend line, thus opening the way to the current month lows - the levels of 1.6100, 1.6030.

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

The MACD histogram is in a negative territory. The price is consolidating.

Trading recommendations

The upward bounce potential target is 1.6440.