18, May 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

In the Bonds Market the 10-year UK government bonds yield reduced which decreased the investments of the British assets. The UK published Consumer Price index for April (0,3% y/y vs. forecast 0,5% y/y).

The price is finding the first support at 1.4400, the next one is at 1.4320. The price is finding the first resistance at 1.4480, the next one is at 1.4560.

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

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

Trading recommendations

The buyers need to break above 1.4480 for a steady growth. We do not exclude the falls to 1.4400.