12, January 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pair GBP/USD continues to move towards the south. In addition to the fundamental factors (the Bank of England and the United States monetary policy difference), and the potential United Kingdom exit from the EU the UK statistics disappointed the market –merchandise trade deficit narrowed in November and fell short of the forecast, amounting to -10.640 billion, against the expected -10.500 billion.

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 and the Kijun-sen show 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

The potential rebound targets are the resistance levels of 1.4630, 1.4700.