27, March 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The National Statistics Office has published the February UK retail sales release. Leading indicators pointed out to the moderately positive data output and the release came out better then the forecasted medians. The 10-year UK bond yields are declining relative to their US and Germany analogues which is a bearish factor for the British pound.

The consolidation was followed by the pound growth. Then the pair decreased. Trades are held below the downward trend line of 1.4920.

The price is finding the first support at 1.4800, the next one is 1.4650. The price is finding the first resistance at 1.4920, the next one is at 1.5015.

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 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 neutral territory. The price is correcting.

Trading recommendations

The pair can fall to the support level of 1.4800. After breaking 1.4800 the sellers may go to 1.4650.