25, February 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK retail sales weak data negatively affect attitude towards the pound in February. The growth potential is also constrained by the improving market relations towards the dollar and by the investors’ risk appetite weakening. The Bank of England Governor Mark Carney made his speech in front of the finance parliamentary committee.

The resistance level of 1.5400 breakthrough was followed by the active price rebound upwards. The price rebound from the level was without volumes. Then the pair tested the support level of 1.5400.

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 and the Kijun-sen show a horizontal movement and form a “Dead Cross”. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

After the resistance level of 1.5510 breakthrough upwards the way to the resistance level of 1.5620 will be opened.