GBP/USD (a 4-hour chart)
The National statistics office shall report about the December inflation. Traditionally, we expect the retail prices growth amid the increasing consumer activity during the Christmas period. Reducing unemployment and wage growth also indicates the personal consumption increase that boosts the CPI growth.
The pound is correcting against the US dollar amid the low volatility and low volumes. As a result correction moves towards the upward channel.
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 and the Kijun-sen show a horizontal movement and form a “Golden Cross”. The downward movement will be until the price is under the Cloud.
The MACD histogram is in a negative territory. The price is consolidating.
We expect the 1.5200 line break that will open the way for the buyers to 1.5300.