27, October 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

We expect the lateral trend amid the mixed news background. The UK 10-year government bond yields are growing relative to their US and Germany counterparts which increases the investments’ attractiveness into the British assets. Traders expected the support from the primary residence sales, still the index came out lower than expected - 468,000 against the forecasted 550,000.

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 weak sell signal; the price is in the Cloud now. The pair is above the Chinkou Span. The Tenkan-sen is directed downwards; the Kijun-sen is horizontal. The downward movement will be continued until the pair does not break the Ichimoku Cloud upwards.

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

Trading recommendations

If the downward movement is continued the price will decrease to 1.5300. In case of a growth the level of 1.5390 will be the first target.