24, March 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The main reasons for the pair’s sales were: renewed fears about the Brexit and the British statistics. Consumer Price Index for February left a negative territory, but did not meet market’s expectations. The index amounted + 0.2% m/m vs. the forecast of + 0.4% m/m. Producer prices showed good results, but the PPI declined by 8.1% from -8.0% versus the expected improvement to -7.4%.

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 1.4160, the next one is at 1.4240.

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 shows a downward movement and the Kijun-sen shows a horizontal movement forming a “Dead Cross”. 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

After the support level of 1.4080 breakthrough down the way to the support 1.4000 will be opened.