04, May 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Great Britain and the United States published the manufacturing sector business climate reports. The industrial sector is showing clear signs of slowdown in both countries and we noted weak releases amid the new production orders low volume.

On the one hand, the British pound can be further supported by the oil prices increase. On the other hand, the pair EUR/GBP cross-rate significant growth amid the Germany and the UK negative bond yields will put pressure on the pound.

The price is finding the first support at 1.5100, the next one is 1.5015. The price is finding the first resistance at 1.5200, the next one is at 1.5300.

There is a confirmed and a weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows an upward movement and form a “Dead Cross”. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

The approach to the level of 1.5100 may lead to a price rebound upwards. The potential rebound target is the resistance level of 1.5200.