15, December 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Due to the UK empty economic calendar traders mainly focused on the dollar dynamics. The pound did not react to the IMF sufficient negatively comments. The Fund has recommended the Bank of England to keep the rates at the low levels for a longer period, making it clear that it did not expect the country inflation quick growth. However, the traders' interest in dollar sales helped the pound to ignore the IMF statements. The pair was supported by the US retail sales report did not reach forecasts.

The price is finding the first support at 1.5100, the next one is at 1.5040. The price is finding the first resistance at 1.5150, the next one is at 1.5200.

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

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

Trading recommendations

We may expect the trades in a flat between the levels of 1.5200 and 1.5150.