GBP/USD (a 4-hour chart)
Despite the fact that the British pound has significantly strengthened for the last two weeks - the short-term uptrend is not complete yet. However we noted a downward rebound yesterday.
The UK GDP for the first quarter came out higher than in the United States. The UK GDP quarterly growth has lagged behind the US for the last nine months, but now the differential is changed which will put some pressure on the US dollar.
The British pound has been steadily strengthening against the US dollar for the third week. The prices growth is amid higher volumes which indicate the buyers increased interest to continue the bullish trend. The pair slightly corrected on the yesterday’s trades.
The price is finding the first support at 1.5300, the next one is 1.5200. The price is finding the first resistance at 1.5390, the next one is at 1.5460.
There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The upward movement will be until the price is above the Cloud.
The MACD histogram is in a positive territory. The price is correcting.
The trend is a down side. We expect the level of 1.5200 testing soon.