19, February 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The attitude towards the pound declined after the UK annual inflation decrease to the minimum for more than 50 years to 0.3% in January from 0.5% in December that was in line with our expectations. The pair growth potential also restricts the British pound sales within the increasing pair euro/pound.

The last week maximum of 1.5300 served as a good support for the corrective pound. The formed consolidation above this level signals about the bullish trend continuation. The pair rebounded upwards and broke through the resistance level of 1.5400.

The price is finding the first support at 1.5400, the next one is 1.5300. The price is finding the first resistance at 1.5510, the next one is at 1.5620.

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 histogram is in a positive territory. The price is growing.

Trading recommendations

The potential growth targets are two resistance levels of 1.5510 и 1.5620.