21, January 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Bank of England Governor Mark Carney energetic speech became the main driver of the Cable fall. According to Mark Carney it is too early to talk about the rate hike, the economic tightening requires the further economic growth and the inflation acceleration. Carney also pointed to the low price pressure in the country. The Carney extremely "soft" comments disarmed the pound which left trying to restore.

The price is finding the first support at 1.4160, the next one is at 1.4080. The price is finding the first resistance at 1.4240, the next one is at 1.4320.

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 and the Kijun-sen show a downward movement. The downward movement will be until the price is below the Cloud.

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

Trading recommendations

If the price fixates below the support 1.4160, it may continue the downward trend in the short term. The potential target is 1.4080.