21, April 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK unemployment reduction is a positive factor for the economy. In February the figure was 5.6% and possibly in March the UK unemployment will be equal to the US indicator of 5.5%.

The Brent oil confidently consolidated above the strong resistance level of 63.15 and we can expect the quotations growth which is also a positive factor for the British pound.

There was a short resistance level of 1.4920 breakthrough without a further consolidation. The price returned below the level on the increased volume.

The price is finding the first support at 1.4800, the next one is 1.4620. The price is finding the first resistance at 1.4920, the next one is at 1.5015.

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 shows a horizontal movement and the Kijun-sen shows 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 correcting.

Trading recommendations

We believe the correction will be continued now. The first target is the level 1.4800.