04, November 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound was stable against the US dollar. Obviously, the lack of the UK information and the fact that the Bank of England and the Federal Reserve policy are directed to one side cause the market reticence, moreover this week the British regulator will hold its next meeting dedicated to the monetary policy issues.

The British pound continues to uncertainly decline against the US dollar.

There was formed the downward channel where the pair is now. Until the price is not out of the channel limits, the downward trend remains in force.

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

The potential decrease target is the support level of 1.5870.