04, September 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK 10-year government bond yields are declining relative to their US counterparts that reduces the investments attractiveness in British assets and does not contribute to the UK national currency demand. The UK service sector business activity decreased contrary to the traders’ expectations and amounted to 55.6 compared with 57.4 the previous month.

The pair pound/dollar is under pressure now. The pair broke through the support level of 1.5300 and continues the downward movement.

The price is finding the first support at 1.5200, the next one is 1.5100. The price is finding the first resistance at 1.5300, the next one is 1.5390.

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 horizontal 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

The potential decrease targets are two levels of support: 1.5200 and 1.5100.