30, December 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

We should expect the moderate downward trend development during the day amid the absence of important macroeconomic statistics publication. The UK and the US 10 year differential bond point out to the British pound short overvaluation.

There was the strong resistance level breakthrough of 1.5550. Nevertheless the pair turned down and this level was broken downwards.

The price is finding the first support at 1.5480, the next one is at 1.5400. The price is finding the first resistance at 1.5550, the next one is at 1.5660.

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 a downward movement and the Kijun-sen shows a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The price is decreasing.

Trading recommendations

We suppose the pair will go to 1.5550 first. Having overcome the first target the price might go upwards to 1.5660.