05, November 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The beginning of the week was negative for the British pound – the pound fell against the dollar under the sentiment pressure caused by the China news. However, the British currency leveled all the losses during the trades and even some time it rose against the dollar. The good “cable” sentiment provided the UK economic data that announced the indicator activity result in the UK manufacturing sector.

At the moment the price is between two important levels of 1.6030 - 1.5950. The breakthrough of one will be a good signal for the trade in the breakthrough direction.

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 trend is going downwards. After the trend line 1.5950 breakthrough the way to the support 1.5870 will be opened.