01, November 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

In the event of positive data from the United States we can expect decline in the course of "Cable". But the pound is technically oversold against the dollar and the euro now, so we wait for a strong reduction of quotations soon. The price shall move in a price range. The next support levels are 1.5970 - 1.5915 and the resistance levels are 1.6060-1.6119.

There is a weak and confirmed sell signal, as the price has just broken the cloud. We have a southern movement. The price chart is below Chinkou span, and the Ichimoku cloud is above the price. Tenkan-Sen and Kijun-sen are horizontal. The Cloud is neutral. 

The upward movement will be kept as long as the Kijun-sen is located at the level 1.6101, being below the price.

Bollinger Bands shows a downward signal, its bands are narrowing and are directed down.
The MACD histogram is in a negative area.

Trading recommendations

A short consolidation with a rollback of the price to the downward trend line is expected in the area 1.6000. We expect the bearish trend to continue again, unless, of course, the sellers are able to consolidate below 1.5990.

In case of a successful breakthrough of the 1.5990 level the way to 1.5925 will be opened.