GBP/USD (a 4-hour chart)
The UK trade deficit increased more than expected in July that amounted to 11.08 billion pounds from 8.51 billion pounds the previous month. Experts expected that the trade deficit would increase to 9.30 billion pounds. The last month UK manufacturing production volume (m/m) has decreased contrary to expectations, reaching 0.8% compared with 0.2% the previous month. Experts expected the growth rate by 0.2% for the last month.
The pound rate stopped not so strong upward movement. After a short-term consolidation at the resistance level of 1.5390 the pair rebounded downwards.
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 1.5460.
The price is in the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement and form a “Golden Cross”.
The MACD histogram is in a positive territory. The price is consolidating.
We believe the growth will be continued now. The first target is the level 1.5460, the next one is the level of 1.5550.