30, May 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The 10-year government bonds yield in the UK decreased. The UK published Consumer Confidence index (-1 vs. previous -3).

Current situation

The GBP/USD strengthened last week and grew above the supports 1.4560 and 1.4670. Still the pair failed to remain near its new month high. The pound fell and broke the mark 1.4670. The support is at the level of 1.4560, the resistance is at 1.4670.

MACD is in a positive area. The indicator kept decreasing. The histogram is below the signal line. The signal is bullish. RSI indicator is above 70 and is overbought.

Trading recommendations

We suppose the downward movement will be continued. The pair may go to 1.4560 soon. The next target is the level of 1.4480.