07, December 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The US dollar general weakness and the stronger-than-expected British statistics have caused the pound sharp rise. After the industrial and construction sectors production slowdown, investors expected the services sector weakness, still the sector business activity report has shown a slight increase.

The price is finding the first support at 1.5100, the next one is at 1.5040. The first resistance stands at 1.5150, the next one is at 1.5200.

The price is in the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement, the Kijun-sen shows a horizontal one and form a “Golden Cross”.

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

Trading recommendations

We expect the resistance level of 1.5150 break that may open the way for the buyers to 1.5200.