01, December 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound was unable to consolidate its success after the resistance level of 1.5660 breakthrough. The price returned back and it has broken through this level downwards amid the low volumes.

The key support for buyers is the uptrend lower bound of 1.5660. Based on the fact on which volatility the sellers drive the price downwards, the price consolidation will be formed near the channel lower bound in the short term.

The price is finding the support at 1.5550. The price is finding the first resistance at 1.5660, the next one is at 1.5870.

There is a non-confirmed and a weak 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 and form a “Dead Cross”. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a neutral territory. The price is decreasing.

Trading recommendations

The buyers need to break above 1.5660 for a steady growth. The way to the mark 1.5870 will be opened after this breakthrough.