07, March 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pair got under pressure after the latest UK releases: service PMI for February fell to 52.7 from 55.6 against the forecast of 55.1. This is the minimum value in nearly three years and is another sign that the UK economy is not in great shape. If this tendency is continued the Bank of England may indeed have to think about the economy stimulation. However, the pound negative reaction was short-lived due to the unstable dollar.

The price is finding the first support at 1.4160, the next one is at 1.4080. The price is finding the first resistance at 1.4240, the next one is at 1.4320.

There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show an upward movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

The buyers need to break above 1.4240 for a steady growth. The way to the mark 1.4320 will be opened after this breakthrough.