08, December 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound practically did not react to the Bank of England's decision to leave the monetary policy without changes. Initially, the pair moved up, but then dropped a few points after the Bank of England’s decision, but in general it remained without significant changes within the daily range. The Bank of England kept the status quo. The pound fell at the end of the week.

The UK and US negative yield spreads are still fairly wide that will act as a deterrent for traders.

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 1.5760, the next one is at 1.5870.

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 decreasing.

Trading recommendations

We believe the decrease will be continued now. The first target is the level 1.5500.