09, October 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British currency can use the demand amid the UK government bond yields relative to their US and Germany counterparts. The whole week we see the US and the UK 10-year government bond yields in the debt market which increases the investments’ attractiveness into the British assets. Investors' attention is directed to the Fed meeting minutes and the US labor market publication.

The pound exchange rate continued its upward movement. In the first half of the day, bears dragged the pair under the level of 1.5300, but later bulls managed to return the price above this mark.

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.

We have a weak buy signal as the price has just left the Cloud. If it remains above the Cloud the signal will get stronger. The pair is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show an upward movement. The upward movement will be until the pair is above the Cloud.

The MACD indicator is in a positive territory. The histogram is growing.

Trading recommendations

The GBP/USD remains above 1.5200 that increases its growth potential. The target is the level 1.5390. Shall the pair return to a decrease it will go to the level of 1.5200.