06, November 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British currency fell after the Bank of England cut its inflation forecasts without changing its monetary policy. The pound fell by 0.65% to 1.5282 against the US dollar. The inflation forecast was revised mainly due to the oil prices and imports fall, as well as the fourth quarter GDP growth and the first quarter of 2016 will be reduced.

The first support is at 1.5200, the second one is at 1.5100. The resistance is at the level of 1.5240, the next one is at 1.5300.

We have a confirmed and strong sell signal now. The pair is below the Cloud. The GBP/USD is above the Chinkou Span. The Tenkan-sen and the Kijun-sen are directed downwards. The pair shall decrease until it stays below the Ichimoku Cloud.

The MACD is below its signal line in the negative territory. The histogram is decreasing.

Trading recommendations

The pound’s fall was stopped at the level of 1.5200. We expect a short-term growth back to 1.5240 or maybe 1.5300. The decrease target is the level of 1.5100.