06, January 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Center of Macroeconomic Research Markit Economics will publish the construction sector business optimism release. According to the BBA, the mortgage lending decline in November indicates the data within the forecasted medians. After the quotations decrease to 52nd figure we can expect some technical rebound.

The pound was about 250 points towards the downward trend. There was the intermediate support level breakthrough of 1.5300.

The price is finding the first support at 1.5200, the next one is at 1.5100. The price is finding the first resistance at 1.5300, the next one is at 1.5400.

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 shows a downward movement and the Kijun-sen shows 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 correcting.

Trading recommendations

The trend is a down side. We expect the level of 1.5100 testing soon.