02, November 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound increased to 1.5300 and updated the two week lows in the framework of decline that was provoked by the Federal Reserve statement. The Committee recognizes that the employment growth slowed and the inflation remained below the target value of 2%, still the question of a possible interest rate hike will be open in December.

As traders expected a more pessimistic turn of events the dollar has grown.

The first support is at 1.5390, the next one is 1.5300. The resistance is at the level of 1.5460, the second one is at 1.5550.

We have a buy signal now as the price broke the Cloud upwards. The pair is above the Chinkou Span. The Tenkan-sen and the Kijun-sen are directed upwards. The upward movement will be continued if the pair stays above the Ichimoku Cloud.

The MACD is above its signal line in the negative territory. The histogram is growing.

Trading recommendations

If the price keeps growing, it will go to the level of 1.5460. The decrease target is the level of 1.5390.