GBP/USD (a 4-hour chart)
We pay attention to the Bank of England inflation quarter report. On the one hand, the energy prices growth have increased the inflation expectations - the UK 10-year bond yields are now above the level of 2%. On the other hand, the low level of average earnings in the first quarter restrained inflation and the private consumption.
As the soft monetary policy is carried out in periods of low inflation – we should not exclude positive comments. Also we should not forget about the pound revaluation against the euro.
The uptrend has stopped for a short time below the intermediate resistance level of 1.5670. The price reached the level on the lower volumes. After the resistance level of 1.5670 breakthrough the level of 1.5775 was tested.
The price is finding the first support at 1.5670, the next one is 1.5550. The price is finding the first resistance at 1.5775, the next one is at 1.5950.
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 upward movement and the Kijun-sen shows a horizontal 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.
After the trend line 1.5775 breakthrough upwards the way to the resistance 1.5950 will be opened.