12, May 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Industrial Production in the United Kingdom for March came below the consensus forecast. (0.1% vs. expectations 0.3%). In the afternoon, the trading was defined by Crude Oil Stocks change in the US (-3.410M vs. forecast 0.714M, previous value 2.784M).

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 correcting.

Trading recommendations

We recommend going short with the first target – 1.4400. When the price consolidates below the first target it may go to the level 1.4320.