06, November 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound spent the day in the very narrow side corridor. The pair attempted to decrease, but returned to the opening prices. Obviously, this situation might be explained by the UK weak news and pending the Bank of England meeting release that will be published on Thursday.

The fifth consecutive day the British Pound is trading below the strong resistance level of 1.6030. The short-term tests are followed by the small prices rebound downwards to the support level of 1.5965.

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 nearest target remains the level of 1.6030. If successful, it is expected to fall to the level of 1.5950 and 1.5870.