12, June 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound was in demand amid the "black gold" price growth. The Brent crude oil has consolidated above the mark of $ 66 barrel amid the US inventories decline which is a negative factor for the US dollar. It should also be noted that the British pound is supported by the pair EUR / GBP quotations decrease.

The UK 10-year negative bond yields are declining relative to their US and Germany counterparts which is also a bearish factor for the pair.

Thanks to the two resistance levels of 1.5390 and 1.5460 breakthrough buyers have strengthened their position in this market.

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 shows an upward movement and the Kijun-sen shows a horizontal movment. 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 believe the growth will be continued now. The first target is the level 1.5550.