16, December 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The oil prices are the main factor that causing the Sterling decline. The pound is vulnerable to the US purchases on expectations about the Fed rate hike.

The price is finding the first support at 1.5040, the next one is at 1.4970. The price is finding the first resistance at 1.5100, the next one is at 1.5150.

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

The MACD indicator is in a neutral territory. The price is correcting.

Trading recommendations

The downward movement will be continued. The pair may go to 1.5040 and 1.4970 soon.