07, September 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK/US services sector indicators differential is increasing in favor of the latter, making it vulnerable to the British currency. There were sales in the product market again that will provide support to the US currency as the raw materials cost is denominated in dollars.

The pair pound/dollar has completed the minimum reduction target. The support level of 1.5200 was broken downwards.

The price is finding the first support at 1.5100, the next one is 1.4975. The price is finding the first resistance at 1.5200, the next one is 1.5300.

There is a confirmed and a strong sell signal. The price is under the 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 histogram is in a negative territory. The price is decreasing.

Trading recommendations

If the price fixates below the support 1.5100, it may continue the downward trend in the short term. The potential target is 1.4975.