29, September 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Last week the Bank of England Financial Policy Committee pointed out to the UK financial stability risks increase. The Brent crude oil dynamics also carries risks for the pound. However, before its decline, the pair GBP/USD is able to demonstrate the short-term price growth amid the UK government bond yields relative to their US and Germany counterparts.

The pound/dollar weak southern movement continues. Pound tried to escape upwards, but the bears managed to break through the support level of 1.5200 and fix the price at this level.

The price is finding the first support at 1.5100, the next one is 1.4975. The price is finding the first resistance at 1.5200, the next one is at 1.5300.

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 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 falling.

Trading recommendations

We advise to short with the first target - 1.5100. When the pair consolidates below the first target, we can open deals to the level of 1.4975.