09, June 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The US labor market positive report for May points out both to the economic growth as a whole and to the inflation increase in particular. Inflation expectations growth will contribute to the fact that investors will lay in their forecasts the monetary policy tightening by the Fed part which will support demand for the US dollar.

The pound downward trend has stopped at the round support level of 1.5200 for the second time. We noted a consolidation below the resistance level of 1.5300. Then the pair increased and broke through the resistance level of 1.5300 upwards.

The price is finding the first support at 1.5300, the next one is 1.5200. The price is finding the first resistance at 1.5390, the next one is at 1.5460.

The price is below the Cloud and it is below the Chinkou Span. The Tenkan-sen shows a downward movement, the Kijun-sen shows a horizontal movement and form a “Dead Cross”.

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

Trading recommendations

We suppose the pair will go to 1.5300 first. Having overcome the first target the price might go downwards to 1.5200.