12, January 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK will publish the industrial production release. In November the CBI reported the industrial orders increase that is a positive factor for the industrial production. The 4th quarter PMI Manufacturing Index was at the level of 53.3% and against this background we can expect the data at the level of the forecasted medians that will support the British pound.

The pound shows a low volatility. For a long time the price have been consolidating below the round resistance level of 1.5100 after the downward channel exit. Then the price broke upwards the resistance level of 1.5100.

The price is finding the first support at 1.5100, the next one is at 1.5015. The price is finding the first resistance at 1.5200, the next one is at 1.5300.

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 an upward movement and the Kijun-sen shows a downward 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 approach to the level of 1.5200 may lead to a price rebound down. The potential rebound target is the level of support 1.5015.