04, April 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The cross-rate EUR/GBP rose by 7.4% since the beginning of 2016 which increased the competitiveness of British goods in the Europe. The government bonds yields grew in relation to their counterparts (the US and Germany) which also played into the hands of bulls. However by the end of the week the sterling sharply fell against the US dollar.

The price is finding the first support at 1.4160, the next one is at 1.4080. The price is finding the first resistance at 1.4240, the next one is at 1.4320.

The price is in the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement forming a “Dead Cross”.

The MACD indicator is in a neutral territory. The price is correcting.

Trading recommendations

The upward bounce potential targets are 1.4240 and 1.4320. If the price falls it will get to 1.4160.