22, February 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Expectations that the UK and Europe will reach the consensus regarding reforms that could leave the UK in the Eurozone supported the pound. According to the European Commission President Juncker they have chances to reach the agreement.

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

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

Trading recommendations

If the pair breaks the level of 1.4400 we expect the growth to 1.4480. After the support level of 1.4320 breakthrough down the way to the support 1.4240 will be opened.