03, October 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound is under pressure this week amid the UK weak macroeconomic statistics. The September PMI construction sector index can also be negative, due to lower activity in the mortgage market.

The tone is negative in the market and the pair broke downwards the support level of 1.6180.

The price is finding the first support at 1.6100, the next one is at 1.6030. The price is finding the first resistance at 1.6180, the next one is at 1.6270.

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 decreasing.

Trading recommendations

After the trend line 1.6100 breakthrough down the way to the support 1.6030 will be opened.