11, January 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Besides to the divergence between the Bank of England and the Fed monetary policies the Sterling is under pressure amid some fears that the UK may exit the EU. The referendum is supposed to take place in the middle of 2016. While traders are speculating about the possible referendum consequences the pound remains in a state of free fall. In addition, the oil price decrease keeps pressuring the Cable.

The price is finding the first support at 1.4480, the next one is at 1.4400. The price is finding the first resistance at 1.4560, the next one is at 1.4530.

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 decreasing.

Trading recommendations

After the support level of 1.4480 breakthrough down the way to the support 1.4400 will be opened.