19, November 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK will publish inflation release that is a very important and influential data. According to the forecasts the October consumer price index (CPI) remained unchanged at the level of 1.2% y/y, the benchmark (Core CPI) has probably raised up to 1.6% y/y from 1.5% y/y that if it impresses the market, it will be likely negative for the pound.

The pair GBP/USD is consolidating near the upper bound of the downtrend channel of 1.5660.

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 downward 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 trend is going down. We expect the level of 1.5550 testing soon.