12, April 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Investors planned to update the March maximum of oil prices that will have a positive impact on the pound. Bonds market showed a growing optimism: the UK government bond yields grew.

The price is finding the first support at 1.4160, the next one is at 1.4080. The price is finding the first resistance at 1.4240, the next one is at 1.4320.

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 forming a “Golden Cross”. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a neutral territory. The price is correcting.

Trading recommendations

After the support level of 1.4160 breakthrough down the way to the support 1.4080 will be opened.