04, November 2015

GBP/USD (a 4-hour chart)


GBP/USD (a 4-hour chart)General overview

The demand for the pound turned out to be short lived, the strong resistance levels to which the pair jumped cooled down the bulls, in addition the investors are cautious on the eve of this week important events which could influence to the further cable movement. Traders wait for the Bank of England's meeting whose results will be known on Thursday as well as the US labor market report that is coming on Friday.

The first support is at 1.5390, the second one is at 1.5300. The resistance is at the level of 1.5460, the next one is at 1.5550.

We have a confirmed buy signal now as the price is above the Cloud. The pair is above the Chinkou Span. The Tenkan-sen is directed downward, the Kijun-sen is horizontal. The pair will continue the upward movement till it stays above the Ichimoku Cloud.

The MACD is above its signal line in the positive territory. The histogram is decreasing.

Trading recommendations

If the price keeps growing it will reach the level of 1.5460 first. The decrease target is the support level of 1.5390.