03, March 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound is trying to intercept the US dollar initiative amid the confident macroeconomic indicators and the US Federal Reserve unclear position and the pound has a chance to strengthen against the US dollar this week.

The downward correction continues from the resistance level of 1.5510. There was the prices decrease amid the lower volumes which led to the uptrend line of 1.5400 breakthrough. This break signals towards the downward correction continuation.

The price is finding the first support at 1.5300, the next one is 1.5200. The price is finding the first resistance at 1.5400, the next one is at 1.5510.

The price is in the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement and form a “Dead Cross”.

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

Trading recommendations

The trend is a down side. We expect the level of 1.5300 testing soon.