24, August 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK government bond yields are declining relative to its US and Germany counterparts, making the British assets low attractive for investors.

Sellers tried to return the price below the support level of 1.5670, but without the subsequent breakthrough. There was formed a short-term consolidation above this level and there is a chance for the rebound upwards.

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 consolidating.

Trading recommendations

The buyers need to break above 1.5775 for a steady growth. The way to the mark 1.5950 will be opened after this breakthrough.