19, August 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The main event of the day was the UK CPI publication. The inflation is traditionally indicator №1 for the currency market and in this regard, there was an increased volatility.

More than a month the resistance level of 1.5670 has been holding back buyers. The price tested this level again on the yesterday’s trades.

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

The potential growth targets are the resistance levels: 1.5775, 1.5970.