Trading recommendations on GBP/USD for December 15, 2014
As illustrated on the chart, the GBP/USD pair made a consolidation level above 1.5890 up to 1.6100 for about 20 days before bearish breakout might take position early in November.
Daily fixation below 1.5870 led bearish pressure to the pair so that it reached the price level of 1.5600 where a new consolidation zone is being established above.
Previous week, the GBP/USD pair was finding intraday Demand around 1.5580-1.5550 where several recent lows were previously made back in November.
The DAILY outlook favors the bullish development towards 1.5800 given that the bulls can possess above 1.5720 soon enough (it could not happen until now).
The market is still trying to establish resistance level around 1.5720 (the upper limit of the illustrated channel) and it may provide some time for more sideways movement.
On the long period, it is either a double-bottom reversal pattern being made above 1.5580 or another bearish flag pattern that waits for bearish breakout below 1.5550 (comparable to what happened back in October).
The 4H chart exposes the recent consolidation trend continues within the limits of the depicted channel.
On the temporary, traditional traders were waiting for a bullish pullback towards the price level of 1.5680-1.5710 for a low-risk Sell position. It was started last week on Friday. It is running in profits now. Stop Loss should be placed lowered to 1.5720.
As expected, clear 4H fixation below the recent Fibonacci levels stage (1.5680 – 1.5700) indicated an upcoming bearish pressure towards 1.5480-1.5500 where the small limit of the current movement channel is positioned.