17, March 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The United Kingdom government bonds yields decreased in relation to their counterparts (the United States and Germany) which reduced the attractiveness of British assets. The pound got under pressure amid a general escape from the risky assets and a new wave of concerns regarding the UK's exit the EU. In addition, the pound was vulnerable amid the divergence between the Fed's monetary policy rates and the Bank of England’s. However by the end of the trades the pair showed a growth. On Thursday the attention of traders will be focused on the British Central Bank meeting.

The price is finding the first support at 1.4160, the next one is at 1.4080. The price is finding the first resistance at 1.4240, the next one is at 1.4320.

There is a non-confirmed and a weak buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

After the resistance level of 1.4240 breakthrough upward the way to the resistance 1.4320 will be opened.