08, September 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

There is the US and the UK credit spreads increase in the bond market which is a positive factor for the US currency. The commodity market also sends a negative signal to the British currency. The Brent crude oil bearish trend will put pressure on the pound, because the raw materials cost is denominated in the US currency. Nevertheless, the pair increased by the end of the yesterday’s trades.

The price is correcting upwards. The pair broke upwards the resistance level of 1.5200.

The price is finding the first support at 1.5200, the next one is 1.5100. The price is finding the first resistance at 1.5300, the next one is 1.5390.

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 horizontal movement and the Kijun-sen shows 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 correcting.

Trading recommendations

We suppose the pair will go to 1.5200 first. Having overcome the first target the price might go downwards to 1.5100.