18, November 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound sales were continued and the overall session result was negative for the "cable". The negative sentiment was formed by the Bank of England quarter inflation report that was published last Wednesday and showed the inflation forecasts decrease and the UK economic growth.

There was a rapid price rebound from the support level of 1.5600 upwards. The rebound was followed by the increased volume. Nevertheless the pair fell below this level.

The price is finding the first support at 1.5550. The price is finding the first resistance at 1.5660, the next one is at 1.5870.

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 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 consolidating.

Trading recommendations

The approach to the level of 1.5870 may lead to the price rebound down.