31, January 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

In quarterly terms the GDP grew by 0.7% in the fourth quarter that is slightly below +0.8% in the third quarter.
The UK Finance Minister Osborne said that the GDP for the fourth quarter showed that the economy recovery continued and it would be unwise to refuse from the plans.

The GBP/USD retreated from 1.6600, at that time the strong resistance is at 1.6660 (Friday's high), up to 1.6675/80 (the channel line from January 10), then at 1.6740/60. The nearest support is located at 1.6470 (recent minimums), below at 1.6400.

The northern movement is almost canceled after the pair decreased. We have a weak anc confirmed sell signal. The price is in 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 indicator is broadening and directed downside.
The MACD is in a negative zone, showing a decrease.

Trading recommendations

We believe the pair to continue falling. The pair is going to fix its positions below the Cloud. Should that happen the falling might be continued to the level 1.6410 and below to 1.6313.