11, May 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

We should pay attention to the UK March trade balance. Two key factors point out to the weak output: the pound revaluation against the euro as well as demand decline in the euro area (the euro zone is the main UK trading partner). If we pay attention to the seasonal dynamics- the March month was negative for exporters.

The price is finding the first support at 1.5390, the next one is 1.5300. The price is finding the first resistance at 1.5460, the next one is at 1.5550.

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 an upward movement and the Kijun-sen shows a horizontal movement. The upward movement will be until the price is above the Cloud.

The MACD histogram is in a positive territory. The price is consolidating.

Trading recommendations

The buyers need to fixate above 1.5460 for a steady growth. The way to the marks 1.5550 and 1.5670 in this case.