07, April 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Sterling strengthened by the end of the trades. Earlier the main drivers for the pair sales were: an escape from risks, oil prices decrease and weak Service PMI in the country. The index grew from 52.7 to 53.7 in March when the market expected the growth to 54,0. The bearish movement was obvious in the Bonds Market as well, which caused the UK 10-year government bonds yield to decrease.

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

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

Trading recommendations

If the price fixates below the support 1.4080, it may continue the downward trend in the short term. The potential target is 1.4000.