25, January 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

In general, waiting the British Prime Minister Cameron speech in Davos became the main negative driver for the pair. The Prime Minister was supposed to speak about a potential UK withdrawal from the EU. This topic has recently become a serious concern to the British currency which has already significantly lost its position amid the economic situation deteriorating in the country.

The price is finding the first support at 1.4240, the next one is at 1.4160. The price is finding the first resistance at 1.4320, the next one is at 1.4400.

There is a confirmed and a strong sell signal. The price is below the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. The downward movement will be until the price is below the Cloud.

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

Trading recommendations

The potential growth targets are two levels of support: 1.4320, 1.4400.