25, November 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound also increased against the dollar, but the "cable" buyings were moderate and were within the price range where there the lateral correction was formed. There were no reasons for disappointment within the pound and the UK finance data could disappoint investors.

The trend remains bearish in the medium term. The price is trading within the side channel of 1.5730 - 1.5600.

The price is finding the first support at 1.5660, the next one is at 1.5550. The price is finding the first resistance at 1.5870, the next one is at 1.5950.

There is a confirmed and a weak sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a neutral territory. The price is correcting.

Trading recommendations

The approach to the level of 1.5870 may lead to the price rebound down. The potential rebound target is the support level of 1.5550.