09, January 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound slightly corrected. Earlier the pound was under pressure amid the rising dollar and the UK weak macroeconomic statistics.

The Bank of England will announce its decision on interest rates and bond buyback program. It is expected that the rate will remain at the level of 0.5% and the program will be in the amount of 375 pounds.

We observe the downward trend volatility decrease within the pair GBP/USD. However, we see the volumes growth.

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

Trading recommendations

The downward movement will be continued. The pair may go to 1.5015 soon.