23, February 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British referendum to stay within the EU or to leave it was the key topic yesterday. The referendum is scheduled for June 23, 2016. We noticed that the more this topic is discussed, the more is noticeable differences of opinion in British society.

The price is finding the first support at 1.4080, the next one is at 1.4000. 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 price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show are directed downwards. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

If the pair breaks the support of 1.4080 we expect a decrease to 1.4000. After the resistance level of 1.4240 breakthrough the way to the level of 1.4320 will be opened.