21, August 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK retail sales rose up in July – it is a clear sign that the consumer spending will continue to stimulate economic growth in the third quarter. The National Statistics Office said on Thursday that retail sales amounted to 0.1% m/m and 4.2% y/y in July. Meanwhile, the US published the initial jobless claims. The initial jobless claims number became more than 4 thousand having increased to 277 thousand.

There was formed the short- term consolidation above the mark of 1.5670 that is playing the role of a strong support after its breakthrough, besides there was this level the short-term breakthrough.

The price is finding the first support at 1.5670, the next one is 1.5550. The price is finding the first resistance at 1.5775, the next one is 1.5950.

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. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

The approach to the level of 1.5670 may lead to a price rebound upwards. The potential rebound targets are the resistance levels of 1.5775, 1.5950.