23, September 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Today we can highlight only the August public sector borrowings release. This indicator growth is a negative factor for the economy as it indicates the tax revenues decline. On the contrary, there was a positive trend in the debt market: the UK government bond yields are growing relative to their US and Germany counterparts which increases the investments’ attractiveness into the British assets.

The pound exchange continued the downward movement and broke through the support level of 1.5460 and 1.5390.

The price is finding the first support at 1.5300, the next one is 1.5200. The price is finding the first resistance at 1.5390, the next one is 1.5460.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement.

The MACD indicator is in a neutral territory. The price is correcting.

Trading recommendations

If the price fixates below the support 1.5300, it may continue the downward trend in the short term. The potential target is 1.5200.