02, June 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK PMI manufacturing index rose up to 52 in May compared with 51.9 the previous month and the forecast of 52.5.

The Bank of England in its monetary policy latest minutes pointed out that we should expect the UK GDP growth in the second quarter and therefore, we may count on the positive data output as industrial production is the cyclical economic indicator.

The two-week pound decline against the US dollar stopped at the support level of 1.5200.

The price is finding the first support at 1.5100, the next one is 1.4975. The price is finding the first resistance at 1.5200, the next one is at 1.5300.

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 shows a downward movement and the Kijun-sen shows a horizontal movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

We expect the 1.5200 line break that will open the way for the buyers to 102.25, further then towards 102.70.