31, March 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Janet Yellen’s soft tone (Federal Reserve Chairman) was fairly predictable, the US dollar sharply retreated against the pound. The pair flew upwards to the weekly highs. Even though the BoE considers the Brexit one of the main threats for the country's financial stability this time it did not prevent the pound from growing.

The price is finding the first support at 1.4320, the next one is at 1.4240. The price is finding the first resistance at 1.4400, the next one is at 1.4480.

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 and the Kijun-sen show an upward movement forming a “Golden Cross”. 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 suppose the pair will go to 1.4400 first. Having overcome the first target the price might go upwards to 1.4480.