11, June 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK national statistics office published the April manufacturing sector production report. The production fell by 0.4% m/m and grew by 0.2% y/y. The PMI manufacturing sector and the Industrialists Confederation industrial orders balance negative reports pointed out to the weak data output. And late in the evening the Bank of England governor Mr. Carney gave his speech.

There was the level of 1.5460 breakthrough. The price output from the channel was on the reduced volume, but it signals towards the bearish trend reversal. The resistance level of 1.5550 was tested.

The price is finding the first support at 1.5460, the next one is 1.5390. The price is finding the first resistance at 1.5550, the next one is at 1.5670.

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 and the Kijun-sen show 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 positive territory. The price is growing.

Trading recommendations

We suppose the pair will go to 1.5460 first. Having overcome the first target the price might go upwards to 1.5390.