05, April 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK GDP in Q4 was revised upward amid the Construction Sector growth. The business activity index came out more than expected – 54.2 against the forecast of 54.0. The growth of the pair was limited by fears regarding Brexit. The market could not ignore the potential demand on the oil market. The oil price has an influence on the pair GBP/USD movement.

The price is finding the first support at 1.4240, the next one is at 1.4160. The price is finding the first resistance at 1.4320, the next one is at 1.4400.

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

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

Trading recommendations

The potential decrease targets are two levels of support: 1.4240 and 1.4160. The potential growth targets are the resistance levels: 1.4320, 1.4400.