20, October 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound gained strong impulse last week after the UK labor market report which showed that the unemployment rate had fallen to the seven years minimum. The technical analysis gives a neutral forecast, still the bullish scenario is the preferred one. The UK Thursday retail sales report is in focus now. The report is expected to show a growth since August.

The first support is at 1.5460, the next one is 1.5390. The resistance is at the level of 1.5550, the second one is at 1.5670. The pair is in a flat right now between 1.5420- 1.5520.

There is a confirmed and strong buy signal; the price is above the Cloud. The pair is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The pair will keep its growth until it stays above the Cloud.

The MACD is in a positive territory. The histogram is decreasing.

Trading recommendations

The pair stopped its growth. If the pair breaks the level 1.5460 and consolidates above it the growth will be continued. Otherwise, it can return below the level of 1.5390.