09, February 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The traders’ attention will be focused on the UK trade balance. The British pound devaluation in relation to its main competitors is a positive factor for the exports growth. There was the traditional trade deficit decline in December.

There was the price output from the four-week downtrend channel. The price output from the channel was followed by the strong resistance level breakthrough of 1.5300. Then the pair returned under this level.

The price is finding the first support at 1.5200, the next one is 1.5100. The price is finding the first resistance at 1.5300, the next one is at 1.5400.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

We suppose the pair will go to 1.5200 first. Having overcome the first target the price might go downwards to 1.5100.