22, January 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The oil dynamics has quite a serious impact on the world markets in recent years. We believe that the GBP/USD is one of the pairs that suffers most of all from the "black gold" decrease. The pressure on the pound is so strong that even quite good UK labor market data failed to provide a substantial support to the Cable.

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 shows a horizontal movement and the Kijun-sen shows 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 correcting.

Trading recommendations

The pair can break the resistance level of 1.4240. After breaking 1.4240 the buyers may go to 1.4320.