16, December 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

On the one hand we have observed the UK and the US negative yield spreads expansion on Friday, 12 December that can encourage bears to open shorts. The pair fell on the yesterday trades.

On the other hand, traders ignored the US positive macroeconomic statistics last week that points out to their reluctance to build up long positions within the dollar.

The pair GBP/USD has been consolidating below the resistance level of 1.5760 for a long time. Then it fell and broke through the support level of 1.5660.

The price is finding the support at 1.5550. The price is finding the first resistance at 1.5660, the next one is at 1.5760.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement.

The MACD histogram is in a neutral territory. The price is decreasing.

Trading recommendations

The bears need to break down 1.5550 for a steady decrease.