19, January 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The main event of the day will be the US inflation release. It is necessary to distinguish two major negative factors for the December CPI - a steep nosedive for hydrocarbons as well as the average hourly wage reduction by 0.2%.

The British pound corrective strength stopped at the resistance level of 1.5200. From this level there was a slight price rebound downwards and the pair tested the level of 1.5100.

The price is finding the first support at 1.5100, the next one is at 1.5015. The price is finding the first resistance at 1.5200, the next one is at 1.5300.

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

Trading recommendations

We suppose the pair will go to 1.5200 first. Having overcome the first target the price might go upwards to 1.5300.