23, March 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound felt the pressure amid the political factor, which added some fears about the Brexit. Ian Duncan Smith, the British Minister for Labour Affairs and Pensions resigned due to disagreements with the Prime Minister over the fiscal policy. In addition to the possible split in the government, the CBI investigation added some negative sentiment. According to the CBI the country's exit from the EU could cost £ 100 billion for the UK economy and nearly 1 million jobs might be lost by 2020.

The price is finding the first support at 1.4160, the next one is at 1.4080. The price is finding the first resistance at 1.4240, the next one is at 1.4320.

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

Trading recommendations

The potential decrease targets are two levels of support: 1.4160, 1.4080.