04, February 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pair got under pressure due to the oil prices drop and the weak secondary report from the UK. The Construction PMI for January sharply fell to 55.0 from 57.8, while analysts had expected a much more modest weakening to 57.6.

The price is finding the first support at 1.4560, the next one is at 1.4480. The price is finding the first resistance at 1.4630, the next one is at 1.4700.

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 shows an upward movement and the Kijun-sen shows 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 believe the growth will be continued now. The targets are the levels of 1.4630 and 1.4700.