13, May 2016

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Bank of England inflation report was the main event of Thursday. As expected the Central Bank comments regarding the economy and the inflation growth were moderate negative. The UK regulator left the rate unchanged at the level of 0,5%.

The price is finding the first support at 1.4400, the next one is at 1.4320. The price is finding the first resistance at 1.4480, the next one is at 1.4560.

There is a confirmed and a strong sell signal. The price is under the Ichimoku Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows a downward movement forming a “Golden cross”. The downward movement will be until the price is under the Cloud.

The MACD indicator is in a negative territory. The price is decreasing.

Trading recommendations

After the support level of 1.4400 breakthrough down the way to the support 1.4320 will be opened.