02, July 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

We should pay attention to the Markit Economics PMI index in the production sphere: the index fell to 51.4 from 51.9 in June. You should also pay attention to the US ADP employment statistics and the business activity in the manufacturing sector. The data showed 237 000 and 53.5. The data came out slightly better then forecasted medians.

After the sixth day of the downward correction the pair is consolidating above the strong support level of 1.5670. Then the broke this level down.

The price is finding the first support at 1.5550, the next one is 1.5460. The price is finding the first resistance at 1.5670, the next one is 1.5775.

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 show and the Kijun-sen show a horizontal movement and form a “Dead Cross”. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The price is decreasing.

Trading recommendations

We suppose the pair will go to 1.5550 first. Having overcome the first target the price might go downwards to 1.5460 and 1.5390