20, January 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Despite the strong dollar bullish trend the British pound failed to update the current month minimum values, indicating the investors’ reluctance to get rid of the "cable". The commodity market stabilization deprives the US dollar support while the UK and the US negative bond yields reduction, on the other hand adds dividends to the British pound. An additional factor for the bulls is the negative expectations for the euro that increases pressure on the cross-rate EUR/GBP which in its turn supports demand for the pound.

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

The pair can grow to the resistance level of 1.3665. The downward bounce potential target is 1.5015.