05, January 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Macroeconomic Research Center Markit Economics shall publish the UK manufacturing sector business climate release. The commodities low demand points out to the weak productive capacity utilization in the world's leading economies.

The price traded in the range of 1.5590 - 1.5480. The pair decreased with a gap and broke down the support level of 1.5400 on Friday.

The price is finding the support at 1.5300. The price is finding the first resistance at 1.5400, the next one is at 1.5480.

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

We believe the decrease will be continued now. The first target is the level of 1.5300.