10, July 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Bank of England announced the monetary policy meeting results. There were not any surprises: the rate was not changed - 0.50%.

The traders' mood will be still determined by the debt and commodity markets dynamics. Among the commodity market instruments we are primarily interested in the Brent oil dynamics as the energy sector accounts for about 10% of the UK GDP.

Unlike most majors which gradually begin to strengthen against the US dollar, the pound is actively declining, breaking through on its way strong support levels. However the pound tried to correct but unsuccessfully.

There was the support level of 1.5390 breakthrough which now plays the resistance role. This level retest was not followed by the price fixing. There is a consolidation below the level of 1.5390.

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 1.5460.

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

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

Trading recommendations

The approach to the level of 1.5390 may lead to a price rebound down. The potential rebound targets are the support levels of 1.5300, 1.5200.