23, November 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK government bond yields are declining relative to their German counterparts. The British Industry Confederation (CBI) data were not so encouraging that showed the industrial production index decreased in November to -6 against the earlier 4 and the orders indicator reduction to -11 from -8 in October.

The "bulls" attempt to continue growth has failed. The resistance at the level of 1.5300 has been only tested. The price could not break through that mark and returned downwards. The support level of 1.5200 was broken through.

The price is finding the first support at 1.5150, the next one is 1.5100. The price is finding the first resistance at 1.5200, the next one is at 1.5300.

There is a non-confirmed and a weak sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward 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 indicator is in a positive territory. The price is correcting.

Trading recommendations

The buyers need to break above 1.5200 for a steady growth. The way to the mark 1.5300 will be opened after this breakthrough.