12, March 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

We expect soon the January UK industrial production release. The PMI manufacturing sector moderate growth indicates the data within the forecasted medians that will not provide a significant support to the British pound.

Once again the US and the UK 10-year bond yields have expanded; the Brent crude oil decreased amid the US dollar revaluation that is a bearish factor for the British pound.

The trade continues below the resistance level of 1.5015 and towards the downward channel.

The price is finding the first support at 1.4920, the next one is 1.4800. The price is finding the first resistance at 1.5015, the next one is at 1.5100.

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 and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The price is decreasing.

Trading recommendations

The potential decrease target is the resistance level of 1.4800.