12, February 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pair ignored the weak UK statistics. The industrial output fell in January by 1.1% m/m and 0.4% y/y vs. -0.1% and + 1.0% and the previous result at the level of -0.8% and +0.7%, respectively. The NIESR GDP estimate for January was + 0.4% versus the previous result of + 0.6%.

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 1.4630.

The price is in the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement.

The MACD indicator is in a positive territory. The price is consolidating.

Trading recommendations

If the price breaks 1.4480 up it will open the way to the resistance level of 1.4560. If the price fixates below the support 1.4400, it may continue the downward trend in the short term. The potential target is 1.4320.