11, March 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The dollar growth will negatively affect the "black gold" on the market. In this regard, the oil quotations reduction will further intensify pressure on the pound which is very sensitive to changes within the Brent varieties cost.

The British pound returned above the resistance level of 1.5100 after it broke through it downwards. The price rebound was at the reduced volume and reached the downtrend channel upper bound of 1.5140. but the pair could not fixate above the level of 1.5100 and is trading under it.

The price is finding the first support at 1.5015, the next one is 1.4920. The price is finding the first resistance at 1.5100, the next one is at 1.5200.

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 consolidating.

Trading recommendations

The price is likely to go downward to the level of 1.4920.