GBP/USD (a 4-hour chart)
The unemployment decrease and the UK average earnings growth triggered the strong demand for mortgage loans at the end of August. The UK government bond yields are growing relative to their American and German competitors that increases the British assets investments’ attractiveness. The market expected quite positive the US Labor market data. In fact the data was inverse. The figures were worse than our expectations.
The pound continues its weak downward movement.
The price is finding the first support at 1.5100, the next one is 1.4975. The price is finding the first resistance at 1.5200, the next one is at 1.5300.
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 decreasing.
The sellers need to break below 1.5100 for a steady decrease. Shall the pair break the level of 1.5100 the way to the mark 1.4975 will be opened.