05.12.201401:57 Forex Analysis & Reviews: Technical Analysis on GBP/USD for December 05, 2014

The BoE Monetary Policy Committee maintained Bank Rate at 0.5%. The Committee also voted to maintain the stock of purchased assets financed by the issuance of central bank reserves at 375 billion pounds sterling. The pound closed marginally red against the US dollar. The pair has been facing strong resistance at 20Dsma for 8 days. The cable has support at 1.5630 on a daily closing basis. In case if the cable closes below 1.5630, we can expect 150-pips fall on the down side. Until the prices are closed and trading below 1.5764 (h4 candle), we can expect 1.5525 on the downside within the strong support zone existed between 1.5630 and 1.5585. From an intraday view, the prices are consolidating between 1.5679 and 1.5710. We recommend selling below 1.5660. The prices are closed and trading below 34hrsma on the h4 chart and the 35DEMA is acting as support at 1.5620. From an speculative perspective, we recommend selling below 1.5660 with the targets at 1.5645, 1.5620, and 1.5585. Today, the focus has shifted to US jobs data and the unemployment rate. Positive readings help the US dollar to make new highs. The cable's fate can be decided after today's US data. The prices are consolidating near the support zone. We can expect 200 pips either side movement in the near term.