04, August 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The data publication has shown that approved applications for mortgage and consumer loans totaled 66.58K and £ 1.22 billion respectively.

The course has received previous support after the UK economy growth strong preliminary estimates. The second quarter data supported the trend set in the first quarter. So the UK economy showed a growth by 2.6% y/y and 0.7% q/q vs. 2.9% and 0.4% respectively in the previous quarter.

The resistance level of 1.5670 was tested for its strength last week. The false level testing was followed by the rebounds downwards. At the beginning of this level the pair decreased.

The price is finding the first support at 1.5550, the next one is 1.5460. The price is finding the first resistance at 1.5670, the next one is 1.5775.

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 an upward movement and the Kijun-sen shows a horizontal movement. 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 1.5550 may lead to a price rebound upwards. The potential rebound target is the resistance level of 1.5670.