19, May 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Great Britain and the United States will not please traders with the interesting macroeconomic releases. In view of the debt market negative dynamics (the UK and the US negative bond yields increase) it was noted the bearish sentiment predominance. At the same time the commodity market dynamics may put pressure on the US dollar as the commodity goods growth causes the dollar decline.

Having tested the level of 1.5775, the British pound turned downwards towards correction. The support level of 1.5670 was broken.

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 at 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 shows a downward movement and the Kijun-sen shows 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

After the trend line 1.5670 breakthrough down the way to the support 1.5550 will be opened. The upward bounce potential target is 1.5775.