09, October 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound set up the two day high and then it again rebounded. The UK industrial production is not in its best condition.

The downward trend line retest of 1.6100 was followed by the consolidation. Then the price dropped down and returned to the support level of 1.6030.

The price is finding the first support at 1.6030, the next one is at 1.5950. The price is finding the first resistance at 1.6100, the next one is at 1.6180.

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 horizontal movement and the Kijun-sen shows a downward 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

The price is possible to consolidate below the level 1.6060. The potential decrease target is the support level 1.5950.