11, May 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Goods Trade Balance in the UK rose more than expected for the last month, supporting the pound. This indicator (seasonally corrected) showed -11.20B vs. forecast -11.30B. The March data was revised from -11.96В to -11.43В. However, the oil reduction kept putting pressure on the pair GBP/USD. The new oil growth let the pair to grow still it decreased by the end of trades.

The price is finding the first support at 1.4400, the next one is at 1.4320. The price is finding the first resistance at 1.4480, the next one is at 1.4560.

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 an upward 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 decreasing.

Trading recommendations

The downward movement will be continued. The pair may go to 1.4400 soon, the next target will be 1.4320.