The bearish sentiments are prevailing in this instrument. According to the National Statistics Office industrial production release – the May industrial production PMI index had been showing a negative trend since April till June. The pound growth against the euro negatively affected the British exports.
We should also pay attention to the oil market sales- the Brent crude oil is trading below $ 60 / barrel. It is a negative signal for the pound as the energy sector accounts about 10% of the US GDP.
The pound has been correcting for three weeks against the US dollar. The trading volumes are gradually forming a divergence at the lower prices, indicating the sellers fading power.
The price is finding the first support at 1.5390, the next one is 1.5300. The price is finding the first resistance at 1.5460, the next one is 1.5550.
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 and the Kijun-sen show a downward 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.
When the price consolidates below the level of 1.5460 it may go to the level 1.5390.