29, December 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

There was a Boxing Day holiday on Monday in the UK. The Sterling recovered after the third quarter UK payment balance optimistic report. Last week the UK government bonds grew in relation to their US and Germany counterparts which increases the Cable investment attractiveness and thereby support the demand for the pound.

The price is finding the first support at 1.4830, the next one is at 1.4760. The price is finding the first resistance at 1.4900, the next one is at 1.4970.

There is a confirmed and a strong sell signal. The price continued to advance south. The Sterling is below the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement forming a “Golden Cross”. The downward movement will be until the price is below the Cloud.

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

Trading recommendations

Technically, the main trend is down. The upcoming news won’t be able to drive the Forex pair lower. We see the level of 1.4970 as the first growth target if the pair keeps its north direction. Shall the pair return to a fall we shall see it at the level of 1.4830 soon.