24, December 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The National statistics office will publish the UK balance of payments quarterly report. There was the strong imports increase in the third quarter that is a negative factor for the payment balance. The Bank of England gold reserves dynamics confirms this negative picture - in the period from July to September, there was the international reserves decline that often happens during the balance of payments deficit.

Sellers have tried twice to break through below the support level of 1.5550 for the last two weeks. There was a twice rebound from the level. The third test of strength was followed by the level breakthrough.

The price is finding the support at 1.5480. The price is finding the first resistance at 1.5550, the next one is at 1.5660.

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 and the Kijun-sen show 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 1.5400.