07, August 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Bank of England has published the quarterly inflation forecast and the last monetary policy meeting minutes, our expectations lie in the fact that two committee members voted for a rate hike. Also the Bank of England governor Mark Carney made his speech. Later NIESR released the UK GDP forecast for July. The BoE kept the interest rates unchanged at 0.50%.

For a long time the price has been consolidating in the side corridor levels: 1.5670 - 1.5550. The resistance level of 1.5670 was repeatedly tested for durability, but without a subsequent breakthrough. The support level of 1.5550 was broken through. The price fixated under this level.

The price is finding the first support at 1.5460, the next one is 1.5390. The price is finding the first resistance at 1.5550, the next one is 1.5670.

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 and the Kijun-sen show a horizontal movement. The upward movement will be until the price is above the Cloud.

The MACD histogram is in a neutral territory. The price is decreasing.

Trading recommendations

The potential decrease targets are two levels of support: 1.5460, 1.5390.