20, November 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Bank of England's last meeting monetary policy minutes will not cause a strong reaction on the traders’ part this time. We received a quarterly inflation report the last week where the monetary authorities indicated all the key guidelines. In this regard, the traders will focus their attention on the Fed “minutes” publication.

There was formed the quite strong divergence within the pound on the trading volumes. The downward trend is not supported by sellers and is gradually losing steam. The pair slightly corrected.

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 1.5870, the next one is at 1.5950.

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 shows a horizontal movement and the Kijun-sen shows 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 correcting.

Trading recommendations

The downward movement will be continued. The pair may go to 1.5660, 1.5550 soon.