14, July 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound has not received any support from the news in trading as the tone is still negative in the market. The main event on the last week was the BoE rate results publication which showed no changes - the monetary policy main parameters, the key interest rate and the bond-buying program amount remained unchanged at 0.5% and 375 billion pounds.

The trade will be conducted in a flat-circular support level of 1.7100. The sellers tried to break below this level for three times, and for three times they came up with a price bounce.

Trading recommendation

The bulls’ target is the closest resistance 1.7160, which is located close to the maximum of the previous week - 1.7175.