27, May 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The revised GDP data for the first quarter was the main event in the UK. The index remained at the same level at 0.4%.

The price is finding the first support at 1.4560, the next one is at 1.4480. The price is finding the first resistance at 1.4670, the next one is at 1.4760.

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 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 correcting.

Trading recommendations

If the price fixates below the support 1.4560, it may continue the downward trend in the short term. The potential target is 1.4480.