31, July 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British currency resumed its decrease against the dollar after two days of sideways consolidation. Perhaps the market didn’t find the BoE lending information enough encouraging which along with very good statistics showed some negative aspects. The pound was pressured by the U.S. economy strong data expectations and the political impulse related with the FOMC solutions emergence. There won't be any news on the pound so it will remain under the external information influence primarily from the United States.

The price is finding the first support at 1.6900, the next one is at 1.6860. 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 decreasing.

Trading recommendations

We expect the level of 1.6880- 1.6900 testing soon. The potential growth target is the level of resistance 1.7000.