08, May 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Yesterday there were the UK Parliament elections. Their results will have a direct impact on the currency. There was observed the US and the UK 10-year negative bond yield increase on the debt market which is a bearish factor for the British pound.

Having broken through the downward channel, buyers consolidated above 1.5200.

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.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a downward movement and form a “Golden Cross”.

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

Trading recommendations

The pair can grow to the resistance level of 1.3665. After breaking 1.3665 the buyers may go to 1.3720.