01, April 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The fact that the UK economy grew in the last three months of 2015 more than it was anticipated helped the pound to strengthen against the dollar. Still the country's current account deficit rose to a record high. The current balance of payments for Q4 was 32.7 billion. pounds. However by the end of the trades the pound showed a consolidation.

The price is finding the first support at 1.4320, the next one is at 1.4240. The price is finding the first resistance at 1.4400, the next one is at 1.4480.

There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show an upward movement forming a “Golden Cross”. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is consolidating.

Trading recommendations

The potential growth targets are the resistance levels: 1.4400 and 1.4480.