24, September 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The trend is not in favor of the British currency in the credit market: the US and the UK government bond yields are increasing. The China negative macroeconomic statistics put pressure on the commodity assets. In this context, the Brent petroleum quotations decrease has a negative impact on the pound rate.

The British pound sharply decreased and broke through the support level of 1.5300.

The price is finding the first support at 1.5200, the next one is 1.5100. The price is finding the first resistance at 1.5300, the next one is 1.5390.

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 downward movement and the Kijun-sen shows a horizontal movement and form 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

The potential decrease targets are two levels of support: 1.5100 and 1.4975.