06, January 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Neither the British statistics bright data nor the weak US figures did not help the pound which is showing the downward trend still expecting the Bank of England rate hike in the coming year. We expect the Bank of England credit conditions report this week.

The price is finding the first support at 1.4630, the next one is at 1.4560. The price is finding the first resistance at 1.4700, the next one is at 1.4760.

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 and the Kijun-sen show a horizontal movement. The downward movement will be until the price is below the Cloud.

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

Trading recommendations

After the support level of 1.4630 breakthrough down the way to the support 1.4560 will be opened.