10, November 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound showed a growth on the Monday trades. Both the UK industrial production mixed results and demand for the dollar put pressure on the pound lat week. Earlier the pound came under pressure after the Bank of England Mark Carney speech who rejected to comment the rate hike this year possibility. The US employment data only added fuel to the fire, having strengthened the dollar against other currencies.

The price reduction was followed by the strong support level of 1.5100 breakthrough amid the increased volume. After the level of 1.5040 testing the pair rebounded upwards and broke through the resistance level of 1.5100.

The price is finding the first support at 1.5100, the next one is 1.5040. The price is finding the first resistance at 1.5150, the next one is at 1.5200.

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 indicator is in a negative territory. The price is correcting.

Trading recommendations

The potential decrease targets are two levels of support: 1.5040, 1.4970.