13, November 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound has sharply fallen against the dollar. Obviously, the market was guided by the technical factors and the US news.

We expect the UK employment data and the inflation report by the Bank of England which will be commented by the institution president M.Karni at the press conference.

The key resistance for bears is the downward trend line of 1.5950, from which the pair rebounded downwards.

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 and the Kijun-sen show 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 decreasing.

Trading recommendations

The trend is a core sided. We expect the level of 1.5660 testing soon