GBP/USD (a 4-hour chart)
The UK published a series of economic reports that have had an impact on the pound dynamics last week. The current deficit account narrowed to -17.460 billion pounds against the expected £ -21.500 in the third quarter which supported the currency. The negative GDP data have been revised downwards - to 0,4% q/q and 2,1% y/y from 0,5% and 2,3% respectively.
The price is finding the first support at 1.4900, the next one is at 1.4830. The price is finding the first resistance at 1.4970, the next one is at 1.5040.
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 an upward movement and the Kijun-sen shows a horizontal movement and form a ‘Golden Cross”. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is correcting.
We expect the 1.4970 line break that will open the way for the buyers to 1.5040.