07, January 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The published positive construction sector PMI was unable to provide strong support for the pound. That is a signal of the strong sellers presence. The Markit published the third report - this time we got the service sector data. This indicator has been showing the moderate growth for the last two months, however, if we want to see a strong demand for the pound the indicator final value should be higher than 56.6 n. The release came in at the level of 55,5 that put pressure on the pound.

The price is finding the first support at 1.4560, the next one is at 1.4480. The price is finding the first resistance at 1.4630, the next one is at 1.4700.

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 downward 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

The downward movement will be continued. The pair may go to 1.4560 soon. The next target is the level of 1.4480.