30, October 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

According to the Ministry of Energy the US crude oil stocks again increased which may put pressure on the basic reference varieties price. The USA did not please traders with the last quarter positive GDP release. The index was expected to reach 1.6%, but in fact it turned out to be worse than expected having amounted less than 1.5%. The Great Britain, on the other hand, upset traders with weak data regarding the same indicator.

The first support is at 1.5300, the next one is 1.5200. The resistance is at the level of 1.5390, the second one is at 1.5460.

We have a strong sell signal; the price is below the Cloud now. The pair is above the Chinkou Span. The Tenkan-sen and the Kijun-sen are horizontal. The downward movement will be continued until the pair does not break the Ichimoku Cloud upwards.

The MACD is below its signal line in the negative territory. The histogram is decreasing.

Trading recommendations

Though the pair returned to the resistance 1.5300 we do not believe it will grow much higher. We support the sell idea. Our primary targets are 1.5200 and 1.5100.