03, April 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The traders’ attention will be focused on the business activity publication in the UK construction sector. This index fell to 57.8 from 60.1 in March. It can be expected the US trade balance data output worse than the forecasted medians which will put pressure on the US dollar. The "black gold" quotations growth also plays into the bulls’ hands within the British pound.

The trade is near the strong support level of 1.4800.

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

The MACD histogram is in a neutral territory. The price is consolidating.

Trading recommendations

We suppose the pair will go to 1.4650 first. Having overcome the first target the price might go downwards to 1.4500.