18, March 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK 10-year bond yields have been declining for four consecutive trading days regarding to their US and Germany counterparts that is a negative factor for the "cable" and will put pressure on the British pound. The low oil prices make the UK key rate decline a real event and against this background we mark the bearish sentiment predominance.

The corrective growth broke through the resistance level of 1.4800. The pair was not able to fixate above this level and decreased below it. The upward correction volumes were in the reduced zone.

The price is finding the first support at 1.4650, the next one is 1.4500. The price is finding the first resistance at 1.4800, the next one is at 1.4920.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The price is falling.

Trading recommendations

The approach to the level of 1.4800 may lead to a price consolidation followed by a rebound down. The potential rebound target is the support level of 1.4650.