11, April 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The weak macroeconomic statistics upset the UK investors. Manufacturing Production for February fell due to the seasonal correction reaching 1.1%, and that was much higher than the forecast 0.2%. In addition the Britain Trade Balance Deficit decreased to 11.96 billion pounds in February from 12.16 billion pounds in January.

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 shows a downward movement and the Kijun-sen shows a horizontal 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

The potential decrease targets are two levels of support: 1.4080 and 1.4000.