30, January 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Today the UK will not please traders with the positive data and in this regard we can expect the side trend continuation during the day. The fundamental background remains mixed - the FOMC negative pigeon rhetoric for the dollar and the Brent inability to consolidate above the psychological level of $ 50 put pressure on the British pound.

Two daily correctional pound growth was stopped by the downtrend channel upper bound of 1.5200. The upper bound testing resulted led to the continued consolidation followed by the decrease under the level of 1.5100.

The price is finding the first support at 1.5015, the next one is 1.4920. The price is finding the first resistance at 1.5100, the next one is at 1.5200.

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

The MACD histogram is in a positive territory. The price is correcting.

Trading recommendations

We suppose the pair will go to 1.5015 first. Having overcome the first target the price might go upwards to 1.4920.