15, February 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Britain Construction PMI rose + 1.5% m/m and 0.5% y/y from -0.5% m/m and -1.1% y/y. Housing building showed growth in the UK in Q4: + 4.1% q/q from 5.7% q/q in Q3. Meanwhile, the dollar remains volatile. According to Janet Yellen there was a good reason to believe that the US economy would remain on a path of a moderate growth that would allow the Fed to conduct monetary policy "gradual change".

The price is finding the first support at 1.4480, the next one is at 1.4400. The price is finding the first resistance at 1.4560, the next one is at 1.4630.

The price is in the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement.

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

Trading recommendations

The break and consolidation above 1.4480 will open the way to the resistance levels of 1.4630 and 1.4700. After the drop below the support of 1.4400 we may see a decrease to 1.4320.