08, April 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The bonds market was against the British assets yesterday. The UK government bonds yields decreased. House Prices Index in the UK rose more than expected, reaching 2.6% compared with -1.5% in the previous month. Experts expected a growth rate for the last month by 0.7%.

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.