19, January 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Cable was unable to take advantage of widespread dollar sales staying among the main outsiders. However, the Pound has had its reasons for that. Firstly, the Sterling is concerned about the UK economy state. Secondly, the Bank of England is unlikely to change the rate this year. In addition, the investors are waiting for the referendum where the UK future in the EU will be decided.

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 Sterling is below 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. The downward movement will be until the price is below the Cloud.

The MACD indicator is in a negative territory. The price is decreasing.

Trading recommendations

After the support level of 1.4240 breakthrough down the way to the support 1.4160 will be opened.