24, November 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound has increased by 3.4% over the last month and a half against its main trading partner which increases the risk for the UK exporters. The CBI respondents identified two key negative factors: the strong pound and the global economic growth weakness.

The British pound showed a decrease from the resistance level of 1.5300. The pair broke through the support levels of 1.5200 and 1.5150. The price reached the levels amid the low volumes, but with an increased volatility.

The price is finding the first support at 1.5100, the next one is 1.5040. The price is finding the first resistance at 1.5150, the next one is at 1.5200.

There is a confirmed and a srong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement and form a “Dead Cross”. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

If the price fixates below the support 1.5100, it may continue the downward trend in the short term. The potential target is 1.5040.