03, November 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound had different directed trades against the dollar and ended the session with its decline less significant than the day before. The sentiments, formed under the Fed's statement influence supported the pair pound/dollar sale and then the US GDP data caused the pound sale.

The support level of 1.6030 breakthrough was followed by a reverse test. This level became a resistance.

The price is finding the first support at 1.5950, the next one is at 1.5870. The price is finding the first resistance at 1.6030, the next one is at 1.6100.

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 histogram is in a negative territory. The price is consolidating.

Trading recommendations

After the trend line 1.5950 breakthrough down the way to the support 1.5870 will be opened.