30, April 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Traders continue to ignore the UK negative macroeconomic statistics which indicates the strong buyers’ presence. The Unites States published the GDP release for the first quarter. Most leading indicators point out to the weak economic growth and in this regard we expect the data output within the range of 0.7-1% which will put pressure on the US dollar.

Trading volumes are in an increased zone, but they are gradually declining downwards. The rising trend indicates towards the formed correction that has not been confirmed yet.

The price is finding the first support at 1.5390, the next one is 1.5300. The price is finding the first resistance at 1.5460, the next one is at 1.5550.

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

Trading recommendations

The approach to the level of 1.5460 may lead to a price rebound down. The potential rebound targets are the support levels of 1.5300.