17, November 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound continued falling against the dollar and finally has fallen below to the annual low. Obviously, the investors are still guided by the emotions, formed under the Bank of England forecasts influence regarding inflation, approving our opinions that the UK interest rates increase will not be implemented in the short term.

The low volumes signal about the weakening sellers’ strength. But at the same time there was not technical signals for the price reverse upwards.

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 shows a downward movement and the Kijun-sen shows 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 1.5550.