14, April 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The industrial production release did not show any strong evidence that indicates that we should not wait for the UK high economic growth in the first quarter of this year.

We observed the UK and Germany negative yield spreads which is also a bearish factor.

Having broken through the strong support level of 1.4650, sellers could not considerably strengthened their position within this instrument and the pair returned above this level. The trade volumes are in reduced area.

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. 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 potential growth target is the resistance level of 1.4800.