13, April 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

According to the latest release, the UK industrial production volume has grown by 0.1% on the month basis in February compared with decline by 0.1% the previous month and the growth forecast by 0.3%. This factor shall support the British pound. However, the UK bond yields showed a decline in relation to their US counterparts in the United States, indicating the bearish sentiment prevalence.

The resistance level unsuccessful of 1.4920 testing was followed by the good rebound with the following support levels of 1.4800 and 1.4650 breakthrough. Then the pair came back to the mark of 1.4650.

The price is finding the first support at 1.4650, the next one is 1.4500. The price is finding the first resistance at 1.4800, the next one is at 1.4920.

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 shows a downward movement and the Kijun-sen shows a horizontal movement and form a “Dead Cross”. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The approach to the level of 1.4800 may lead to a price rebound down.