03, September 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Euro zone and the UK bond yields have been increasing for five months in a row which is a negative factor for the UK economic growth. Yesterday the UK government bond yields declined significantly relative to their US and Germany counterparts. Markit Economics published the UK construction sector PMI index data.

The pair pound/dollar is trading under the pressure. The pair broke through the support level of 1.5300, but the pair closed the trades above this level.

The price is finding the first support at 1.5300, the next one is 1.5200. The price is finding the first resistance at 1.5390, the next one is 1.5460.

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 downward movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

We suppose the pair will go to 1.5200 first. Having overcome the first target the price might go downwards to 1.5100.