18, February 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The January UK inflation will be in the center of our attention. It is forecasted the consumer price index (CPI) decline by 0.9%.

The pair is under pressure amid the investors increased risk aversion. The potential pair decrease was limited by demand for the British pound in the declining pair euro/pound.

The upward trend was stopped at the mark of 1.5400 from which was followed a slight rebound downwards and formed a consolidation.

The price is finding the first support at 1.5300, the next one is 1.5200. The price is finding the first resistance at 1.5400, the next one is at 1.5510.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement. The upward movement will be until the price is above the Cloud.

The MACD histogram is in a positive territory. The price is consolidating.

Trading recommendations

The downward movement will be continued. The pair may go to 1.5300 and 1.5200 soon.