01, October 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The National Statistical Office has published the second quarter payments. The data was better than expected -16.8 billion with forecast of -22.3 billion. The Germany and the UK government bond yields may support the pound for a short time. The consumer confidence strong data was published in favor of the US currency, which confirms the US economic growth high rate.

The pound/dollar keeps weak downward movement. After the level of 1.5200 test, the pair took a southern direction, having fixed above the level of 1.5100 by the end of trading.

The price is finding the first support at 1.5100, the next one is 1.4975. The price is finding the first resistance at 1.5200, the next one is at 1.5300.

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 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 falling.

Trading recommendations

The sellers need to break below 1.5100. The way to the mark 1.4975 will be opened after this breakthrough.