23, December 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The United States can please the traders with the secondary market housing sales positive report that will support the demand for the US dollar. The commodity market negative trend was also able to support the dollar - the CRB Commodity Index decreased by 1.42% at the last week.

The trading within the pound has been going in the downward channel for six week in a row. Last week before reaching the channel lower bound, buyers set the price up that was fallowed by the decrease movement.

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 a horizontal trend 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 decreasing.

Trading recommendations

The upward movement target is 1.5760. If the price falls it will get to 1.5550.