22, April 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The United Kingdom and the United States did not please traders with the important macroeconomic statistics. The UK and the US 10-year negative bond yields are lower the level of 31 bp which is a positive factor for the British pound. After the corrective movement towards the 49th figure that we had seen before, traders rushed to build up long positions at the attractive levels.

The strong resistance level breakthrough of 1.4920 was short-lived. Sellers were able to return back the price below this mark. Nevertheless the bulls could break the level of 1.4920 upwards by the end of the trades.

The price is finding the first support at 1.4920, the next one is 1.4800. The price is finding the first resistance at 1.5015, the next one is at 1.5100.

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 above the Cloud.

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

Trading recommendations

The price is likely to go to the support level of 1.4800. The buyers need to break above 1.5015 for a steady growth.