10, November 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound slightly rose against the dollar. Earlier the British pound fell. The Bank of England has not changed the monetary policy parameters- the refinancing rate remained at the level of 0.5% and the bond purchases program is in the amount of 375 billion of British pounds. However, it was considered by the market as the reason for the pound decrease and put some pressure on the "cable".

Sellers have managed to break through the support level of 1.5870 for the second time. The level breakthrough was amid the high volumes. The pair is testing the level of 1.5870 from the bottom.

The price is finding the first support at 1.5660. The price is finding the first resistance at 1.5870, the next one is at 1.5950.

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 correcting.

Trading recommendations

The downward movement will be continued. The pair may go to 1.5660 soon.