29, February 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK GDP report coincided with the forecasts and provoked the pound weakening. The economy grew by 1.9% and 0.5% in the fourth quarter. The volume of business investment fell by 2.1% after a growth of 1.2% previously.

The price is finding the first support at 1.3840, the next one is at 1.3760. The price is finding the first resistance at 1.3920, the next one is at 1.4000.

There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a downward movement. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is decreasing.

Trading recommendations

If the price fixates below the support 1.3840, it may continue the downward trend in the short term. The potential target is 1.3760.