12, December 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK and the US negative bond yields moderate reduction points out to the possible pound growth. The US employment and consumer confidence positive macroeconomic statistics allows to count on the retail sales increase in November.

The pound was correcting against the US dollar the whole week, approaching the downward trend line of 1.5760 which is currently playing the role of key resistance.

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 on 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 consolidating.

Trading recommendations

The approach to the level of 1.5760 may lead to a price rebound down. The potential decrease targets are two levels of support: 1.5660, 1.5550.