24, May 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

On Monday, Britain did not publish important fundamental reports. According to Bonds market the British currency grew strongly: government bonds yield differential (the US and UK) expanded to the highest level in the last month and a half.

The price is finding the first support at 1.4480, the next one is at 1.4400. The price is finding the first resistance at 1.4560, the next one is at 1.4670.

There is a confirmed and a strong buy signal. The price is above the Ichimoku Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen show a horizontal movement forming a “Dead Cross”. 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

After the support level of 1.4400 breakthrough down the way to the support 1.4320 will be opened.