09, March 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The GBP/USD strengthened amid a weakening of the dollar. We believe that the Bank of England may still raise the rate in Q4. Meanwhile, the US dollar came under pressure as expectations of an early interest rates increase weakened when the market got another portion of the weak statistics from China.

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 indicator is decreasing.

Trading recommendations

We recommend to long with the target of 1.4320. The second growth target is the level of 1.4400.