01, April 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK released the last year 4th quarter payments balance. There was a negative trade balance reduction in the last quarter of 2014 which is a positive factor for the payments balance indicator. The UK consumer confidence index by GfK rose by 3 points to 4 points in February. All the five index components have grown.

The continued price consolidation above the strong support level of 1.4800 was followed by a breakthrough. The sellers could not fixate below this level and the pair returned above it.

The price is finding the first support at 1.4800, the next one is 1.4650. The price is finding the first resistance at 1.4920, the next one is at 1.5015.

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

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

Trading recommendations

The potential growth target is are the resistance level of 1.4920. This level testing is more likely to lead to the strong price support level 1.4650 return.