27, January 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The traders ‘disregard towards the UK retail sales positive release points out to the strong bearish trend. Despite the fact that quarterly sales showed maximum growth over the past 12 years - the British pound was hardly able to consolidate near the resistance level of 1.5100.

There was the level breakthrough of 1.5100 which currently stands as the strong resistance. It is worth noting that the level breakthrough of 1.5100 was amid the low volumes.

The price is finding the first support at 1.5015, the next one is 1.4920. The price is finding the first resistance at 1.5100, the next one is at 1.5200.

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 and the Kijun-sen show 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 correcting.

Trading recommendations

We believe the growth will be continued now. The first targets are the levels of 1.5200 and 1.5300.