19, February 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

We received moderately negative reports on two major macroeconomic indicators this week (inflation and unemployment), which calls into question the further British currency strengthening.

The price is finding the first support at 1.4320, the next one is at 1.4240. The price is finding the first resistance at 1.4400, the next one is at 1.4480.

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

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

Trading recommendations

The potential growth target is the resistance level of 1.4400. We do not exclude the falls to 1.4240.