18, March 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The growth of pessimism regarding the UK economy prespectives contributed to consumer activity reduction: the volume of retail trade grew by 2.28% in 2015, against the growth of 4.31% a year earlier. Given the fact that the Bank of England expects wage growth slowdown in the current year, the negative scenario becomes quite obvious.

The price is finding the first support at 1.4400, the next one is at 1.4320. The price is finding the first resistance at 1.4480, the next one is at 1.4560.

There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

The potential growth targets are the resistance levels: 1.4480, 1.4560.