16, March 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

We expect the downward trend development. The US moderately positive macroeconomic statistics will support small demand for the US dollar. The UK 10-year bond yields are reducing in relation to its main German and the US competitors which is a bearish factor for the "cable".

The strong resistance level of 1.4800 which has recently acted in a supporting role was broken downwards amid the strong volume.

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 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 potential growth targets are the resistance levels: 1.4800, 1.4920.