05, November 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

We expect the quarterly inflation report, the monetary policy decision and the Monetary Committee meeting minutes today. There will be the Mark Carney's press conference after all releases. Perhaps the Bank of England will indicate that market expectations regarding the rate changes became too soft, if it happens, the news can support the pound. In the case the pair may rise to 1.55. Kristin Forbes may join those who support the rate increase.
The first support is at 1.5300, the second one is at 1.5240. The resistance is at the level of 1.5390, the next one is at 1.5460.

We have a confirmed and weak buy signal now as the price entered the Cloud. The pair is above the Chinkou Span. The Tenkan-sen is horizontal; the Kijun-sen is directed upwards. The pair will continue the upward movement till it stays above the Ichimoku Cloud.

The MACD is above its signal line in the positive territory. The histogram is decreasing.

Trading recommendations

If the price keeps growing it will reach the level of 1.5460 first. The decrease target is the support level of 1.5300.