GBP/USD (a 4-hour chart)
The debt and commodity markets’ dynamics is now clearly on the "bulls" side. In addition, the data on the volume of production in the manufacturing industry has been released. The data was 0.2% better than expected, accounting for 0.5%. The UK and the US government bond yields have been declining for five consecutive trading days, which increases the investments’ attractiveness into the British assets. Yesterday the Brent crude oil reached the level of $ 50/barrel, which will put pressure on the dollar.
The pair continues the rapid movement north. Bulls managed to break the resistance level of 1.5300, and if the bears will not take the initiative, the price will continue to rise.
The price is finding the first support at 1.5300, the next one is 1.5200. The price is finding the first resistance at 1.5390, the next one is at 1.5460.
The sell signal is weak as the price entered the Cloud. The pair is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement is slowed down while the price is in the Cloud.
The MACD indicator is in a positive territory. The price started a correction.
The growth dynamics is slowed down. If the GBP/USD remains above 1.5200 the growth will be continued. The target is the level 1.5390. Shall the pair return to a decrease it will go to 1.5200 first.