08, December 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK government bond yields significantly grew relative to their US and Germany counterparts which increased the investment attractiveness into the British assets and supported the pound. In the absence of the UK releases and important events the pair dynamics was mainly driven by technical factors and the dollar general partial recovery.

The price is finding the first support at 1.5040, the next one is at 1.4970. The price is finding the first resistance at 1.5100, the next one is at 1.5150.

There is a non-confirmed and a weak sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Golden Cross”. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

After the resistance level of 1.5100 breakthrough upwards the way to the resistance 1.5150 will be opened.