25, March 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK government bonds yields grew in relation to their counterparts (the United States and Germany), which increased the attractiveness of British assets. The increased "risk appetite" could not be ignored as well, putting pressure on the cross-rate EUR/GBP. The risk appetite had a positive impact on the British currency.

The price is finding the first support at 1.4160, the next one is at 1.4080. The price is finding the first resistance at 1.4240, the next one is at 1.4320.

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 horizontal movement and the Kijun-sen shows a downward 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 correcting.

Trading recommendations

We expect the 1.4240 line break that will open the way for the buyers to 1.4320.