03, February 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK manufacturing sector last 2014 quarter was very weak and amid the euro zone economy weakness it is difficult to expect positive changes. We can expect the news slightly worse than the forecast which will have some pressure on the British pound.

There was a short-term resistance level of 1.5100 testing amid the low volumes. The level testing was followed by the price rebound downwards with the following testing and fixating above the support near 1.5015.

The price is finding the first support at 1.5015, the next one is 1.4920. The price is finding the first resistance at 1.5100, the next one is at 1.5200.

There is a non-confirmed and a weak 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 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

The potential growth target is the resistance level of 1.5200. The strong resistance level 1.5200 test will be followed by a consolidation.