28, April 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK Gross Domestic Product rose up by 0.4%, as expected. The UK economy showed a growth of 0.6%. In the Bonds Market, the 10-year UK government bonds yield increased which slightly supported the demand for the pound.

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 shows an upward movement and the Kijun-sen shows 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 correcting.

Trading recommendations

We expect the 1.4480 line break that will open the way for the sellers to 1.4400.