20, November 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart

General overview

The UK National Statistics Office published the October retail sales report. The consensus forecast pointed out to the retail sector sales growth slowdown by 0.4% compared with the previous month as the September sales increased by 1.9%. In fact the index fell by 0,6%. The UK unemployment fell to their lowest levels since mid-2008, the third quarter average earnings increased by 3% in annual terms.

The price is finding the first support at 1.5200, the next one is 1.5150. The price is finding the first resistance at 1.5300, the next one is at 1.5390.

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 and form 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 growing.

Trading recommendations

We believe the growth will be continued now. After breaking 1.5300 the buyers may go to 1.5390.