05, February 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Markit Economics will publish the UK service sector business climate data. The unemployment reduction with the UK average wage increase can allow us to count on the index growth compared to the previous month. In this regard, the British pound can get some support.

The support level of 1.5015 stopped the pound decline against the US dollar for the second time. The short-term level testing was followed by the price upward rebound amid the increased trading volumes. The resistance levels of 1.5100 and 1.5200 were broken.

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

There is a confirmed and a strong 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 under the Cloud.

The MACD histogram is in a positive territory. The price is growing.

Trading recommendations

The potential growth target is the resistance level of 1.5300.