Forex Technical Analysis GBP/USD

Posted By Posted On 20 January 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The sterling fell against the US dollar after Mark Carney said that the UK Central Bank was not planning to raise the interest rates at the moment. The December UK inflation reached 11-month high, as it was expected. According to the National Statistics Office, the consumer prices rose in December by 0.2% y/y, after rising 0.1% in November.

The price is finding the first support at 1.4160, the next one is at 1.4080. The price is finding the first resistance at 1.4240, the next one is at 1.4320.

There is a confirmed and a strong sell signal. The Sterling is below the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a downward movement. The downward movement will be until the price is below the Cloud.

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

Trading recommendations

The pair is undervalued and we may expect an upward rebound. The upward bounce potential target are 1.4240, 1.4320.

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