20, April 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound may remain volatile as the possibility of a rate hike was reduced by the Bank of England. While taking a decision on the interest rates last week, the English regulator also discussed the risks for the country economy in case of Brexit. According to M. Carney speech on Tuesday the impact of Brexit would not be helpful and it would make a financing of the payment balance more costly.

The price is finding the first support at 1.4320, the next one is at 1.4240. The price is finding the first resistance at 1.4400, the next one is at 1.4480.

There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement forming a “Golden Cross”. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is increasing.

Trading recommendations

We suppose the pair will go to 1.4400 first. Having overcome the first target the price might go upwards to 1.4480.