08, February 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The 10-year government bonds yield is increasing against their counterparts from the United States and Germany which increases the investments attractiveness in the British assets. Last week traders’ attention was directed to the Bank of England. Still the pound did not react to the regulator’s meeting as we anticipated.

The price is finding the first support at 1.4480, the next one is at 1.4400. The price is finding the first resistance at 1.4560, the next one is at 1.4630.

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 a horizontal movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

We expect the 1.4480 line break that will open the way for the sellers to 1.4400.