23, January 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The ECB meeting results announcement is in the center of traders’ attention. Last year when the Eurozone monetary authorities declared the monetary policy easing- the British pound declined after its European counterparts.

The current price was trading within the rectangle levels of 1.5200 - 1.5050. Its rebound from the resistance level of 1.5200 enabled sellers to come up to the support level of 1.5100. This support was broken down and the support level of 1.5015 was tested.

The price is finding the first support at 1.5015, the next one is at 1.4920. The price is finding the first resistance at 1.5100, the next one is at 1.5200.

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

The MACD histogram is in a negative territory. The price is falling.

Trading recommendations

If the price fixates below the support 1.5015, it may consolidate in the short term. Then the pair can grow. The potential growth target is 1.5200.