18, December 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK weak inflation release for November questions the further pound strengthening. The Bank of England's monetary policy minutes also will not be able to encourage traders - inflation expectations are reducing and the main trading partner weak economic growth will hold back the UK economic growth.

There were made attempts to rise trades to the higher levels within this pair. However, the resistance at the level of 1.5760 limited the pair growth and triggered the rebound downwards. The pair tested the support level of 1.5660.

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.

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

The MACD histogram is in a neutral territory. The price is decreasing.

Trading recommendations

The price is likely to go to the downward trend line 1.5550.