12, May 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The UK and the US bond yields fell by 11.8 basis points which indicate that the debt market participants reacted positively to the conservatives’ victory in parliamentary elections.

The Bank of England announced the monetary policy meeting results: key interest rate has remained the same - 0.5%.

The level of 1.5390 retesting was followed by the upward rebound and the previous high update of 1.5497. The resistance levels of 1.5460 and 1.5550 were broken.

The price is finding the first support at 1.5550, the next one is 1.5460. The price is finding the first resistance at 1.5670, the next one is at 1.5750.

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 an upward movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

The potential decrease target is the support levels of 1.5390.