10, December 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound showed strength amid the partial profit taking on short positions. The UK inflation expectations reduction with sales on the commodity market will form a stable downward trend.

The strong level of 1.5660 did not have time to be a strong level after last Friday it was broken through downwards. In the light of the lower volumes there was a reversal breakthrough.

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 weak sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward 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 neutral territory. The price is increasing.

Trading recommendations

The potential growth target is the resistance level of 1.5760.