18, January 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The GBP/USD showed no noticeable reaction to the Bank of England verdict, as the expectations regarding the meeting outcome were unanimous. The regulator confirmed its forecasts, leaving the current monetary policy course unchanged. The rate remained at 0.5% and the asset purchase program amounts 375 billion. The votes’ layout has remained the same - 8 to 1.

The price is finding the first support at 1.4240, the next one is at 1.4160. The price is finding the first resistance at 1.4320, the next one is at 1.4400.

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 downward movement. The downward movement will be until the price is below the Cloud.

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 1.4240 and 1.4160 soon.