03, February 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK favorable statistics supported the pound. The Markit Manufacturing PMI jumped to 52.9, exceeding the forecast of 51.8 and the previous value of 52.3. The weak USA statistics supported the GBP/USD as well.

The UK published construction PMI for January (55,0 against the forecasted 57,5).We expect the quarterly inflation report on Thursday which may disappoint investors with the revised inflation and GBP estimates to the negative direction.

The price is finding the first support at 1.4400, the next one is at 1.4320. The price is finding the first resistance at 1.4480, the next one is at 1.4560.

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 a horizontal 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 growing.

Trading recommendations

We expect the 1.4480 line break that will open the way for the buyers to 1.4560.