20, April 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK national statistics office published the February labor market release. The UK economy is showing signs of stable growth which allows us to count on the unemployment reduction. The unemployment rate is 5.6% that is 2008 minimum. The US moderately positive inflation data has frozen the bulls’ enthusiasm.

Buyers have tested the resistance level of 1.5015 and there was a rebound downwards.

The price is finding the first support at 1.4920, the next one is 1.4800. The price is finding the first resistance at 1.5015, the next one is at 1.5100.

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 under the Cloud.

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

Trading recommendations

If the price fixates below the support 1.4920, it may continue the downward trend in the short term. The potential targets are 1.4800 and 1.4650. The buyers need to break above 1.5015 for a steady growth.