02, March 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The United Kingdom published the manufacturing PMI for February: 50,8 (the forecast was 52.3). The previous statistics from the UK was quite positive: Mortgage Approvals exceeded the forecasts, having reached 74,581 against the previous 71,335. Meanwhile, Consumer Credit for January amounted £ 1.564 billion against the expected 1,300 billion.

The price is finding the first support at 1.3920, the next one is at 1.3840. The price is finding the first resistance at 1.4000, the next one is at 1.4080.

There is a confirmed and a strong sell signal. The price is under the Ichimoku 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 correcting.

Trading recommendations

The upward movement potential targets are 1.4000 and 1.4050. If the price falls it will get to 1.3920 and 1.3840.