GBP/USD (a 4-hour chart)
The GBP/USD was being traded upwards when the data released showed UK Construction PMI growth, which remains on the 6-year highs.
PMI index for the construction sector in the UK in October rose to 59.4 p, against 58.9 in September- while it was expected to decrease. The construction continues its growth, but the sector accounts for only 6.3% of the entire economy.
GBPUSD is being traded in a downward channel, going slowly down. It has to break the mark 1.6000 and a strong support level at 1.5990 to change its direction to the South. Shall that happen and 1.5925 will becomes a potential target.
There is a strong and confirmed sell signal, the price is below Chinkou span, and the Ichimoku cloud is below the price. Tenkan-Sen and Kijun-sen are directed down. The Cloud is going down as well.
The downward movement will be continued as long as the Kijun-sen is above the price.
Bollinger Bands confirms the present movement, its bands are narrowing and are directed downwards.
The MACD histogram is in a negative area, its volumes are reducing.
The corrective pullback up to 1.5890 is not supported by high volumes, that may cause a rebound down and then a retest of the support level 1.5920.