30, October 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pair GBP/USD tried to fall below 1.6100 amid the UK weak data and still remains there. The mortgages approvals came weaker than it had expected from 61 267 to 62 250.

The money supply was also weaker than it had expected - at -0.7% vs. 0.5%, reflecting the lower price pressure.

The pair GBP/USD failed to update the last week maximum level of 1.6180.

The price is finding the first support at 1.6030, the next one is at 1.5950. The price is finding the first resistance at 1.6100, the next one is at 1.6180.

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

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

Trading recommendations

The level of 1.6100 testing may lead to the price rebound down. The potential rebound targets are the support levels of 1.6030, 1.5950.