07, May 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Center for Macroeconomic Research Markit Economics published the UK the service sector data. The manufacturing and construction sectors two previous reports disappointed investors with the weak figures. The pair EUR/GBP cross-rate dynamics also plays into the bears’ hands within the British pound.

The rebound from the level of 1.5100 was followed on the increased volume and allowed buyers to break through the level of 1.5200.

The price is finding the first support at 1.5200, the next one is 1.5100. The price is finding the first resistance at 1.5300, the next one is at 1.5390.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a downward movement.

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

Trading recommendations

We may expect the growth towards 1.5300 further on we expect a fall to 1.5200 and 1.5100.