09, April 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The March UK PMI services showed the maximum growth over the past 6 months, pointing out to the stable economic growth in the first quarter of this year. We expect the US crude oil reserves reduction which will allow the bulls to consolidate above the psychological level of $60/ barrel within the Brent crude, and thus, it will put pressure on the US dollar. 

The correctional price decline from the resistance level of 1.4920 was on the strong support level of 1.4800. The short-term trend line of 1.4800 testing was followed by the rebound upwardsand the resistance level of 1.4920.

The price is finding the first support at 1.4800, the next one is 1.4650. The price is finding the first resistance at 1.4920, the next one is at 1.5015. 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 a horizontal movement and the Kijun-sen shows an upward movement and form a “Golden Cross”. The upward movement will be until the price is above the Cloud. 

The MACD histogram is in a neutral territory. The price is falling 

Trading recommendations 

We expect the 1.4800 line break that will open the way downwards to 1.4650.