16, March 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound fell when traders began buying the dollar. The main drivers for the pair GBP/USD were the coming Fed’s and the Bank of England’s meetings. Even though we do not expect any action from the regulator the market can become volatile if we get Mark Carney’s negative comments regarding the state of the UK economy.

The price is finding the first support at 1.4080, the next one is at 1.4000. The price is finding the first resistance at 1.4160, the next one is at 1.4240.

The price is in the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement forming a “Dead Cross”.

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

Trading recommendations

The downward movement will be continued. The pair may go to 1.4080 and 1.4000 soon.