24, December 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK data pointed out to the net borrowing volume growth to £ 13.5 billion against the forecast of 11.0 billion and the previous value of 6.7 billion. The US GDP report has demonstrated the US currency vulnerability. The US second homes sales index was weak which has supported the pound.

The price is finding the first support at 1.4830, the next one is at 1.4760. The price is finding the first resistance at 1.4900, the next one is at 1.4970.

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 indicator is in a negative territory. The price is decreasing.

Trading recommendations

We believe the consolidation will be continued now. Then we suppose the pair will go to 1.4900 first. Having overcome the first target the price might go upwards to 1.4970.