08, January 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The strong dollar does not leave the choice to the pound which has to develop the downward momentum. The EUR/GBP dynamics played the negative role for the Cable having grown within the day. The UK statistics continues to disappoint traders. The UK surfaced the house prices minor report that came in better then forecasted median 9,5%(y/y) and 1,7%(m/m).

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 shows a horizontal movement and the Kijun-sen shows 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 correcting.

Trading recommendations

We suppose the pair will go to 1.4630 first. Having overcome the first target the price might go upwards to 1.4700.