18, August 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The June UK weak labor market raise doubts on the monetary tightening prospects by the Bank of England in 2016. The UK unemployment rate in the second quarter rose up by 0.1% while the US unemployment rate has decreased by 0.2%.

The September USA rate hike expectations are intensified amid the positive economic data. In addition, the dollar is supported by the oil prices decline.

The resistance level of 1.5670 testing was followed by the pair rebound downwards.

The price is finding the first support at 1.5550, the next one is 1.5460. The price is finding the first resistance at 1.5670, the next one is 1.5775.

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 a horizontal movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

We may expect the consolidation around the support level of 1.5550 further on we expect a growth to 1.5670, 1.5775.