14, November 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK economic data have shown the labor market positive results, but the inflation report and the BoE M.Karni’s comments caused a pessimism wave and provoked the pressure increase on the pound which fell against the dollar to the new local low and ended the trades with significant losses.

The British pound broke through and fixed below the strong support level of 1.5870. The level breakthrough was amid the GBP high volatile news.

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 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 decreasing.

Trading recommendations

The price is likely to go to the downward trend line 1.5660.