10, March 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

According to the National Statistics Office Industrial Production for February grew for the first time in three months. The index showed growth by 0.3% on a monthly basis after a decline by 1.1% in December. The increase was the first in three months and the most significant in five months. However, economists had expected a growth rate of 0.4%. Meanwhile, Manufacturing Production increased by 0.7%, the forecast was 0.2%.

The price is finding the first support at 1.4160, the next one is at 1.4080. The price is finding the first resistance at 1.4240, the next one is at 1.4320.

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. If the pair does not break the resistance of 1.4240 in may bounce downwards to 1.4000.