15, January 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Bank of England's monetary policy decision was the main event of the day. The market did not expect any changes from the regulator, although the regulator’s comments regarding the country economy and the monetary policy prospects revived the pair GBPUSD movement.

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 Sterling is below the Ichimoku 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 below the Cloud.

The MACD indicator is in a negative territory. The price is consolidating.

Trading recommendations

We believe the consolidation at the level of 1.4400 will be continued now.