26, January 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

According to the data released by the UK National Statistics Office, the retail sales volume including the fuel costs increased by 0.4% on a monthly basis in December, compared with a growth by 1.6% recorded in November. After the ECB's decision to launch the QE from March 1 there was a strong demand for the US dollar.

Sellers have strengthened the downward trend, breaking through and consolidating below the strong support level of 1.5015.

The price is finding the first support at 1.4920, the next one is at 1.4800. The price is finding the first resistance at 1.5015, the next one is at 1.5100.

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. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The price is consolidating.

Trading recommendations

The potential decrease targets are two levels of support: 1.4920, 1.4800.