03, July 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The positive fundamental data for GBP (Manufacturing Index PMI), released in the first half of the week, provided good support for buyers. Due to the fundamental factor the price broke the the uplink of 1.7120 upper bound, opening up the way upward.

There were published two positive news (House Price Index), which may assist the British pound against the U.S. dollar growth.

The price is finding the first support at 1.7115, the next one is at 1.7080. The price is finding the first resistance at 1.7160, the next one is at 1.7220. There is a confirmed and strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The upward movement will be until the price is above the Kijun-Sen.

The MACD histogram is in the positive territory.

Trading recommendations

The pair is close to the strong resistance 1.7000. If the pair breaks it we expect the growth to 1.7200.