02, December 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Markit UK PMI manufacturing sector did not please investors with the strong data: 52.7 vs. 53.6. The British pound sgowed a growth after the UK third quarter strong report. Still the currency has lost 2.4% against the dollar in November, largely due to the Bank of England chief economist Andy Haldane comments who said that the UK did not need to raise the rates in the near future.

The pair showed some growth, staying under pressure below the nearest resistance of 1.5100.

The price is finding the first support at 1.5040, the next one is at 1.4970. The price is finding the first resistance at 1.5100, the next one is at 1.5150.

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 indicator is in a negative territory. The price is correcting.

Trading recommendations

We suppose the pair will go to 1.5040 first. Having overcome the first target the price might go downwards to 1.4970.