26, May 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The liquidity was very low amid the UK and the US public holidays and in this regard, we had a horizontal trend.

Last week the British pound fell against the dollar by more than 200 points. The price reduction was on the high volume and led to the price output from the upward channel.

The price is finding the first support at 1.5460, the next one is 1.5390. The price is finding the first resistance at 1.5550, the next one is at 1.5670.

There is a non-confirmed and a weak sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward 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 buyers need to break above 1.5550 for a steady growth. The way to the marks of 1.5670 and 1.5775 will be opened after this breakthrough.