18, April 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound fell when the IMF changed the forecast of UK GDP for the current year from 2.2% to 1.9%. The IMF again reminded about the consequences of London Brexit which continue to pressure the market. The strong economic reports could not support the pound: the CPI accelerated to 0.5% - this is the highest level in the past 15 months, the Core Inflation grew from 1.2% to 1.5%. Only by the end of the trades the pound strengthened amid the dollar’s weakness.

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.

The price is in the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement forming a “Dead Cross”.

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

Trading recommendations

We may expect the growth towards 1.4240. We do not exclude the falls to 1.4160.