GBP/USD (a 4-hour chart)
The pair began the trading week with a slight increase, reaching a two-week maximum on Tuesday. But the pound fell to the level 1.5075 in the second half of the day. The index of business activity in the manufacturing sector of the United Kingdom, which came below the key level on 50 points, made a footboard to bears.
The pressure on the pound which increased in March pressured the pound as well.
The pair continues to trade under the cloud still it tried to grow yesterday. The upward movement ended at the lower boundary of the Ichimoku cloud.
The Tenkan-Sen line is above the Kijun-Sen. Tenkan-Sen and Kijun-Sen go downwards. The direction of the cloud is changing to the downward.
"Bollinger Bands" are maximum expanded showing a confirmed downtrend.
MACD is below the zero line, the crossing with the signal line is not expected in the near future.
Recently, the pair was trading at 1.5075 support level which remains a tough nut for "bears". But if we take the weakness of the British economy, it can be assumed that this level will be overcome soon and the pair will fall to the levels 1.5075, 1.4990 and 1.4885.
It is possible a temporary upward correction to the level 1.5160, after which the price will continue to fall again. We recommend to open short positions when the price exceeds the level 1.5060.
Short-term buy position can be opened if the price reaches 1.5135.
When the price moves we should move and stop-loss level. When we get profit of 20-30 points stop loss should be placed into a break even.
When you open positions consider the fundamental analysis and the time of its release as well.