06, April 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pair pound/dollar sharply fell. Earlier the pound strengthened amid a strong construction PMI report. The indicator remained at 54.2 vs. the forecast of 54.0. The EURGBP additionally supported the pound. The recent macroeconomic data helped the pound to ignore a possible threat of losing the current rate after the Brexit.

The price is finding the first support at 1.4080, the next one is at 1.4000. The price is finding the first resistance at 1.4160, the next one is at 1.4240.

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

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

Trading recommendations

After the support level of 1.4080 breakthrough down the way to the support 1.4000 will be opened.