17, December 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK National statistics office will publish the consumer price index release for November. The UK government bonds dynamics is decreasing, signaling about the inflationary pressure decline. In the light of this we expect the data output at the level of year on year 1.2%.

There was a rebound from the resistance level of 1.5760. The rebound was followed on the increased volumes, but was met with a round mark of 1.5600 where now we see a correction upwards. Then it was the price downward movement.

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 strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. The upward movement will be until the price is above the Cloud.

The MACD histogram is in a positive territory. The price is correcting.

Trading recommendations

The trend is a down side. We expect the level of 1.5660 testing soon.