08, January 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The US moderately negative macroeconomic statistics will allow the British pound to take a breath. The oil prices decline caused the UK and the US bond yields increase, but the negative 10-year bond yields continued to fall. However, it is still premature to talk about the full reversal.

Now the trade within the GBP is towards the downward channel, its upper bound is at the level of 1.5200 and it will be broken through upwards in the short term.

The price is finding the first support at 1.5015. The price is finding the first resistance at 1.5100, the next one is at 1.5200.

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 shows a downward movement and the Kijun-sen shows a horizontal 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

The approach to the level of 1.5200 may lead to a price rebound down. The potential rebound target is the support levels of 1.5100 and 1.5015.