GBP/USD (a 4-hour chart)
The course of the trades was determined by two key factors: the debt and commodity markets dynamics. Now the US and the UK interest differentials are clearly not in favor of the latter. Investors consider about the quotes the fact that we should not expect the UK economic growth pace in the third quarter. The industrial orders sharp decline clearly points out to that fact.
The pound exchange rate stopped the strong downward movement and broke through the support level of 1.5300 and tested the support level of 1.5200.
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 consolidating.
We suppose the pair will go to 1.5200 first. Having overcome the first target the price might go downwards to 1.5100.