GBP/USD (a 4-hour chart)
The pound fell after the weak inflation publication in the UK. The base CPI rose by only 1.2% y/y. Meanwhile, the overall inflation rate decreased by 0.8% m/m from the previous of 0.1%. These figures show that the Bank of England will definitely not soon take measures against the price pressure.
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 price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement forming a “Dead Cross”. The downward movement will be until the price is under the Cloud.
The MACD indicator is in a negative territory. The price is decreasing.
The buyers need to break above 1.4320 for a steady growth. The way to the mark 1.4400 will be opened after this breakthrough. The sellers need to break below 1.4240 for a steady decrease. The way to the mark 1.4160 will be opened after this breakthrough.