15, January 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

We can expect the negative comments about the UK inflation in the short term. Inflation in the United Kingdom is significantly deviated from the target rate of 2% and now the head of the Bank of England will have to explain it to the Minister of Finance.

Buyers came to the level of 1.5200 towards the upward channel. The level testing was followed by the rebound with the following channel lower bound 1.5100 breakthrough. The pair increased from this level and broke through the resistance level of 1.5200.

The price is finding the first support at 1.5200, the next one is at 1.5100. The price is finding the first resistance at 1.5300, the next one is at 1.5400.

The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows a horizontal movement and the Kijun-sen shows an upward movement.

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

Trading recommendations

We believe the growth will be continued now. The first target is the level 1.5300. We do not exclude the falls to 1.5015.