17, December 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound did not react to the UK inflation report. The November consumer price index was on the ground level against the expected decline by 0.1%. Meanwhile, the main CPI index is in line with expectations at the level of + 1.2%, having shown an increase from the previous level of 0.1%. On the other hand, the British producers’ prices disappointed traders: the PPI base index fell by 0.2% m/m and 0.1% y/y vs. 0.0% and 0.1% respectively. Having ignored conflicting statistics, the pound was again dominated by the dollar renewed growth.

The price is finding the first support at 1.4970, the next one is at 1.4900. The price is finding the first resistance at 1.5040, the next one is at 1.5100.

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 and the Kijun-sen show a downward movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is decreasing.

Trading recommendations

After the support level of 1.4970 breakthrough down the way to the support 1.4900 will be opened.