26, October 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pair GBP/USD continued its decrease after the ECB President Draghi hinted that the central bank was considering the possibility of taking new economic growth and inflation stimulating measures. The retail sales report supported the pound still the pair was unable to overcome the level of 1.5500 as the market again increased expectations of a rate hike at the Fed pen half 2016. The pound touched new daily lows near 1.5350. The dollar keeps growing that increased the pair's correction.

The first support is at 1.5300, the next one is 1.5200. The resistance is at the level of 1.5390, the second one is at 1.5460.

We have a strong sell signal; the price is below the Cloud now. The pair is above the Chinkou Span. The Tenkan-sen and the Kijun-sen directed downwards and forms “Dead Cross”. The downward movement will be continued until the pair is below the Ichimoku Cloud.

The MACD is below its signal line in the negative territory. The histogram is decreasing.

Trading recommendations

If the downward movement is continued the price will decrease to 1.5300. We do not exclude some correction upwards. Shall the pair grow the level of 1.5390 will be the first our goal.