26, April 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The sterling grew after Obama’s speech (the US President). According to Barack Obama the UK will get in the "end of line" concerning the trade agreement with the United States if the country leaves the EU alliance. The UK GDP report for the first quarter is the main event in the country for this week. The report is to be published on Wednesday. The forecast is 0.4%, the previous value was 0.6%.

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 1.4650.

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 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 growing.

Trading recommendations

We believe the growth will be continued now. The first target is the level 1.4560, the next one is 1.4640.