07, April 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The London banks were closed yesterday and in this regard we noted the sluggish trade during the day. The United States published the ISM services sector business activity release.

The labor market negative Friday release will contribute to the US and the UK negative bond yields reduction that will generate a strong demand for the British pound.

Due to the level of 1.4920 breakthrough upwards the downward trend is moving slowly, but surely towards the upward correction.

The price is finding the first support at 1.4920, the next one is 1.4800. The price is finding the first resistance at 1.5015, the next one is at 1.5100.

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 and the Kijun-sen show a horizontal movement and form a “Golden Cross”. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

The potential correction growth targets are the resistance levels: 1.5015, 1.5100.