28, July 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The downtrend changed to the upward movement. There are still active sales on the commodity market which is a positive factor for the US currency as the raw material assets cost is denominated in dollars. It should also be noted that the British currency traditionally negatively reacts to the oil bearish trend. Last week the Brent crude finished at the mark of $ 55 / barrel and the next stop will, possibly, be near the 53rd figure.

There was the resistance level of 1.5550 breakthrough upwards and trades closed at the level of 1.5572.

The price is finding the first support at 1.5550, the next one is 1.5460. The price is finding the first resistance at 1.5670, the next one is 1.5775.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement and form a “Dead Cross”.

The MACD histogram is in a negative territory. The price is correcting.

Trading recommendations

After the resistance level of 1.5670 breakthrough upwards the way to the resistance level of 1.5775 will be opened. The resistance level of 1.5670 test is more likely to lead to the rebound downwards.