08, March 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The service sector PMI in the USA and the UK is hard to ignore: PMI differential for February shifted in favor of the United States. On the other hand, the same differential was in favor of the United Kingdom a month earlier. The service sector was not chosen by chance - this sector is the basis of the GDP for both economies.

The price is finding the first support at 1.4240, the next one is at 1.4160. The price is finding the first resistance at 1.4320, the next one is at 1.4400.

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

We believe the growth will be continued now. The first target is the level 1.4320, the next one is 1.4400.