12, November 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound also spent the yesterday's trading in the side trade. The general market sentiment was influenced by the GBP/USD which decreased in the early session and then rose that resulted in the pound strengthening at the end of the day.

The resistance level short break of 1.5870 was followed by the reverse price return above this mark. The reverse price return above the level of 1.5870 allowed the buyers to lower the price to the resistance level of 1.5950.

The trading volumes are at the lows, besides today we expect the fundamental data releases. We expect a consolidation below the support level of 1.5950 in the short term.

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 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 negative territory. The price is correcting.

Trading recommendations

The potential decrease target is the support level of 1.5660.