27, May 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound was under pressure amid the US dollar global upward trend. It is worth noting that the rate of its decline will be less than the euro decrease. It is due to the fact that the EUR/GBP downward trend got some support for the British pound.

The pound broke through and consolidated below the support level of 1.5460. Trading volumes are in the decreased zone and the price is trading around 1.5390.

The price is finding the first support at 1.5390, the next one is 1.5300. The price is finding the first resistance at 1.5460, the next one is at 1.5550.

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 falling.

Trading recommendations

If the price fixates below the support 1.5390, it may continue the downward trend in the short term. The potential target is 1.5300.