07, January 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Markit Economics will publish the third and final UK release. At this time we will get business optimism data in the service sector. We expect the data at the level of consensus forecast that will give some support to the pound. The US ISM service sector release can also reach the level of the forecasted medians.

The gap was not closed. There were no changes in the price volatility. The trade is below the resistance at the level of 1.5200.

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

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 falling.

Trading recommendations

We expect the consolidation in the range 1.5300-1.5200.