13, July 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK National Statistical Office published the May trade balance report. This week the industrial production release indicates that this sector has developed immunity to the pound revaluation against the euro.

Having broken through the support level of 1.5390, the downward trend line went into the prolonged consolidation. Then the thrice grew and the level of 1.5460 was broken though. After the resistance level of 1.5550 testing the pair rebounded downwards.

The price is finding the first support at 1.5460, the next one is 1.5390. The price is finding the first resistance at 1.5550, the next one is 1.5670.

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 consolidating.

Trading recommendations

The pair is close to the strong support level of 1.5460. If the pair breaks it we expect the decrease to 1.5390.