04, January 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

We see a mixed background of the British currency. The 10-year UK government bonds decline relative to their US and Germany reduces the British assets attractiveness adding a downward pressure on the pound. The Cable situation is worst among the major currencies on the current US dollar corrective phase. The pound increased only by the end of the trades.

The price is finding the first support at 1.4760, the next one is at 1.4700. The price is finding the first resistance at 1.4830, the next one is at 1.4900.

There is a confirmed and a strong sell signal. The Sterling is below the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement forming a “Dead Cross”. The downward movement will be until the price is below the Cloud.

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

Trading recommendations

We suppose the pair will trade in a flat between the levels of 1.4760-1.4830.