22, April 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK government bonds yield reduced in the Bonds market which decreased the attractiveness of the British assets. The UK retail sales fell by 1.3% in March after falling by 0.5% in February. Analysts expected a decrease of 0.1%.

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 buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

We expect a decrease towards the level of 1.4160. If the pair gets below the Cloud and consolidates there we will see a deeper move towards 1.4000.