24, February 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK published the retail sales report according to the British Industry Confederation. The index showed +1 after +39. This is the minimum since November 2013.

The pair GBP/USD still continues to be in demand on the dips, however, the pair failed to return above the fifty-fourth figure.

There was a short-term consolidation under the resistance level of 1.5400. This consolidation was followed by an active rebound upwards above this level against the increased volume.

The price is finding the first support at 1.5400, the next one is 1.5300. The price is finding the first resistance at 1.5510, the next one is at 1.5620.

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

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

Trading recommendations

We suppose the pair will go to 1.5510 first. Having overcome the first target the price might go upwards to 1.5620