GBP/USD (a 4-hour chart)
Bulls tried to develop a corrective movement, using a profit-taking on the short positions on the financial institutions part.
The UK industrial production report for October disappointed traders with its weak data - instead of the growth rate we observed a decline by 0.1%. This release supports the BoE’s 4th quarter slowdown forecast.
The British pound is slowly correcting towards the downward trend line of 1.5760 that is the key support for the 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 non-confirmed and a weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Golden Cross”. The upward movement will be until the price is above the Cloud.
The MACD histogram is in a positive territory. The price is increasing.
The level of 1.5760 testing is more likely to lead to the rebound downwards.