01, June 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK National Statistical Office kept the GDP assessment for the first quarter unchanged despite the Bank of England positive forecasts about the May monetary policy meeting results. It should also be noted that the export and the consumer spending indicators were revised into the negative side.

The downward trend is gradually losing its strength. In recent days we observe the reduced volatility in the market.

The price is finding the first support at 1.5200, the next one is 1.5100. The price is finding the first resistance at 1.5300, the next one is at 1.5390.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The approach to the level of 1.5390 may lead to a price rebound down. The potential rebound targets are the support levels of 1.5200, 1.5100.