22, December 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British currency was not able to take advantage of the dollar widespread weakening in Asian session. The pound is under pressure amid the strong dollar as well as the Bank of England rate hike prospects after the inflation forecast worsening and the country wages increase slowdown. The UK withdrawal from the EU is an additional risk factor which from time to time makes the Sterling fell.

The price is finding the first support at 1.4830, the next one is at 1.4760. The price is finding the first resistance at 1.4900, the next one is at 1.4970.

There is a confirmed and a strong sell signal. The price is under the 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 under the Cloud.

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

Trading recommendations

The upward bounce potential target is 1.4970. If the price falls it will get to 1.4830.