09, December 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK and the United States will not please traders with interesting macroeconomic releases. In this regard, traders will focus their attention on the bond market dynamics. The Treasury and Gilts 10-year bond yields have grown again after the negative labor market release that is a bearish factor for the British pound. The last trading week closed on the minimum value over the past 13 months points out to the steady bearish trend.

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 correcting.

Trading recommendations

The downward movement will be continued. The pair may go to 1.5550 soon.