22, December 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK retail sales strong release supported the demand for the British pound, but it does not mean the downward trend breakthrough. Demand for the US dollar is still stable – the dollar index basket (USDX) is now close to the five-year high.

The pound rebounded after an active price decrease from the resistance level of 1.5660. The pair slightly fell at the end of the last week.

The price is finding the support at 1.5550. The price is finding the first resistance at 1.5660, the next one is at 1.5760.

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 trend and the Kijun-sen shows 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 decreasing.

Trading recommendations

The potential growth target is the resistance level of 1.5760.