14, April 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The positive UK statistics supported the pound. The inflation unexpectedly accelerated to + 0.4% m/m and + 0.5% y/y vs. the forecast of + 0.3% and + 0.4% respectively. The commodity market dynamics also played into the bulls’ hands: oil and metals were in steady demand. Then the pair GBP/USD decreased amid the dollar’s strengthening.

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.

The price is in the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement forming a “Golden Cross”.

The MACD indicator is in a positive territory. The price is correcting.

Trading recommendations

The potential decrease targets are two levels of support: 1.4160 and 1.4080.