21, November 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound was able to hold its positions. It rebounded after the Federal Reserve minutes publication. Then the pair rose.

For the first time the Bank of England has expressed some concerns about the inflation forecasts because the inflation level tends to decrease.

The British pound started to consolidate above 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 1.5870, 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 an upward movement and the Kijun-sen shows a horizontal movement and form a “Golden Cross”. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The upward trend line 1.5870 retest is more likely to lead to the strong price support level of 1.5660 return. When the price consolidates below the first target it may go to the level 1.5550.