16, April 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The dollar bulls fixed long positions after the quotations rapid growth – we have seen a rebound from the psychological level of 100.00 within the dollar index basket (USDX) for two consecutive trading days.

The debt market dynamics indicates the neutral background and taking into account the fact that the British pound has corrected from the Monday minimum values - we can expect quotations stabilization.

The beginning of the trading week was on the positive note. Due to the formed correction buyers have broken through the resistance level of 1.4800.

The price is finding the first support at 1.4800, the next one is 1.4650. The price is finding the first resistance at 1.4920, the next one is at 1.5015.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a downward movement and form a “Golden Cross”. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a neutral territory. The price is correcting.

Trading recommendations

The potential growth target is the resistance level of 1.4920.