05, December 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound has got the opportunity to take time out for some time. The yesterday service sector business activity publication exceeded the annual average which is a positive signal for the British economy. The pound strengthened along the entire market, particularly the day was successful for the British pound against the euro yesterday.

The trade within the pound has been without changes for three weeks. There was formed the strong support level of 1.5660 on the daily chart that constantly rebounds sellers upwards.

The price is finding the first support at 1.5660, the next one is at 1.5550. The price is finding the first resistance at 1.5870, the next one is at 1.5950.

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 downward movement. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a neutral territory. The price is correcting.

Trading recommendations

The approach to 1.5760 may lead to a price rebound down. The potential rebound target is the support level of 1.5550.