01, February 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK GDP increased by 2.2% in 2015. The economic slowdown is a negative factor for the currency, but the pound was in a correction phase to the downward trend and the price growth may be continued.

According to the USA GDP leading indicators we should not expect positive data. The release came worse then it was expected: 0,7% against the forecasted 0,8%.

The price is finding the first support at 1.4160, the next one is at 1.4080. The price is finding the first resistance at 1.4240, the next one is at 1.4320.

There is a non-confirmed and a weak sell signal. The price is under the Ichimoku 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 positive territory. The price is correcting.

Trading recommendations

The upward bounce potential target are 1.4320, 1.4400.