22, September 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK government bond yields are increasing in the debt market relative to their US and Germany counterparts which increases the British assets investments’ attractiveness. The cross-rate EUR/GBP decrease is also a positive factor for the British currency against US dollar.

The pound exchange rate started its correction and broke through the support level of 1.5550.

The price is finding the first support at 1.5460, the next one is 1.5390. The price is finding the first resistance at 1.5550, the next one is 1.5670.

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 indicator is in a positive territory. The price is correcting.

Trading recommendations

We expect the 1.5550 line break that will open the way for the buyers to 1.5670.