28, January 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

All traders’ attention will be focused on the 4th quarter UK GDP release. On the one hand, the manufacturing and service sector slowdown points out to the weak report. On the other hand, the average earnings growth and the unemployment reduction spurred private consumption. The Bank of England economists expect growth by 0.6%.

Buyers correct the price upwards amid the lower volumes. There is the strong resistance level of 1.5100 breakthrough and the level of 1.5200 testing amid the formed correction.

The price is finding the first support at 1.5100, the next one is 1.5015. The price is finding the first resistance at 1.5200, the next one is at 1.5300.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The level of 1.5200 test may lead to a price rebound down. The potential rebound targets are the support levels of 1.5015, 1.4920.