The UK PMI construction sector index was published within the consensus forecast. On the one hand, the incomes growth increases the real estate demand. On the other hand, the mortgage interest rates moderate growth, combined with the property prices increase will deter potential buyers (the UK property has grown by 8.4% for the first ten months).
The pair GBP/USD rate rose to 1.5100, but then the pair sharply fell. The support levels of 1.5040 and 1.4970 were broken through. The level of 1.4900 was tested.
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 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 indicator is in a negative territory. The price is decreasing.
We expect the support level of 1.4900 break that will open the way for the level of 1.4830. Further on we expect a growth to 1.5100 where the pair may stop.