29, April 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK national statistics office published the first quarter GDP preliminary data. The British pound growth with weak demand in the Old World has hit the UK trade balance. It should be noted that not only the manufacturing sector is showing slowdown.

The March retail sales release also indicates that the wages decline makes Britons to save more than spend.

The British pound has already been demonstrating the confident growth against the US dollar for the third week. The active price growth was followed by the resistance level permanent breakthroughs.

The price is finding the first support at 1.5300, the next one is 1.5200. The price is finding the first resistance at 1.5390, the next one is at 1.5460.

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

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

Trading recommendations

The potential decrease targets are two levels of support: 1.5300, 1.5200.