15, December 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The trade within the pound has been for a long time near the downward trend line of 1.5750. The buyers tested this resistance last week.

It is worth noting that the price tested the 1.5760 resistance and then rebounded down. The support level of 1.5660 was also tested. The price is not determined the direction and consolidated.

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 confirmed and a weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show an upward movement. 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 potential decrease target is the resistance level of 1.5660.