26, November 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The inflation parliamentary hearings were held in the United Kingdom. The CPI figures showed its growth to 1.3% in October, but the inflation expectations remain subdued amid the lower energy prices. The unemployment rate reduction with the moderate average salary increase will reinforce the inflationary growth in the commodity market correction period.

The sellers have been reducing the price towards the downward channel the fifth week in a row. Every time when the price is corrected to the channel upper bound there is formed the price rebound downwards.

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.

The price is in the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show an upward movement.

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

Trading recommendations

The upward trend line of 1.5870 retest is more likely to lead to the strong price support level of 1.5550 decrease.