12, November 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK National Statistics website published the labor market release. The Bank of England pointed to the steady domestic demand in its latest monetary policy reviews amid the unemployment decline and the average earnings growth. “Bears” ended the game and continued to open short positions on the attractive levels, playing off the divergence, expecting the US Fed and the Bank of England monetary policy. However the pair pound/dollar showed a growth.

The pair tested the support level of 1.5150 and rebounded upwards. The bulls broke through the resistance level of 1.5200.

The price is finding the first support at 1.5200, the next one is 1.5150. The price is finding the first resistance at 1.5300, the next one is at 1.5390.

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 a downward movement and form a “Golden Cross”. 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: 1.5150, 1.5100.