26, May 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound is approaching its high of the week due to reduced uncertainty about the outcome of the referendum. According to the latest poll the number of Brexit opponents is 55% vs. 42% who want to exit the EU.

The price is finding the first support at 1.4670, the next one is at 1.4560. The price is finding the first resistance at 1.4760, the next one is at 1.4880.

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 an upward movement and the Kijun-sen shows a horizontal movement forming a “Golden Cross”. The upward movement will be until the price is above the Cloud.

The MACD indicator is in a positive territory. The price is increasing.

Trading recommendations

We expect the 1.4760 line break that will open the way for the buyers to 1.4880.