13, February 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Traders responded positively on the Bank of England quarterly inflation report. We saw an unemployment decrease in the UK which together with the average earnings growth is a positive factor not only for the economic growth, but also for the inflation. The UK 10-year bond yields are now at the level of 1.67% that is higher by 33 basis points above the January lows.

The trade within the pound looked quite sluggish and low volatile. The pound sharply increased after the news publication.

The price is finding the first support at 1.5300, the next one is 1.5200. The price is finding the first resistance at 1.5400, the next one is at 1.5510.

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 shows an upwards movements and the Kijun-sen shows a horizontal movement and form a “Golden Cross”. 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 growth targets is the resistance level of 1.5510.