GBP/USD (a 4-hour chart)
The traders' attention is focused on the UK statistics. The United Kingdom is on the verge of deflation and therefore the average wage release will attract the traders' attention as salaries have a direct impact on the CPI. In its quarterly economic forecast the Bank of England pointed out to the low productivity which will hold back economic growth. In this context, we expected the average earnings data output less than forecasted medians. The data came out at the level of 2.7% (forecast 2.1%).
According to the technical analysis, buyers are still dominant in the market.
The price is finding the first support at 1.5670, the next one is 1.5550. The price is finding the resistance at 1.5950.
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 and the Kijun-sen show an upward movement. The upward movement will be until the price is above the Cloud.
The MACD histogram is in a positive territory. The price is increasing.
After the resistance level of 1.5775 breakthrough upwards the way to the resistance level of 1.5950 will be opened.