GBP/USD (a 4-hour chart
The pound continues to show the downward trend. The inflation weak data disappointed investors and against this background, the pound is showing its weakness in relation to its main competitors. The currency market has been still expecting for the recent weeks that the Bank of England will raise the interest rates in the first half of 2016. Now, these expectations were completely leveled and investors begin to revise their forecasts.
The first support is at 1.5460, the next one is 1.5390. The resistance is at the level of 1.5550, the second one is at 1.5670. The pound rate continued its upward correctional movement.
There is a confirmed and strong buy signal, the price is above the Cloud. The pair is above the Chinkou Span. The Tenkan-sen and the Kijun-sen are directed upwards. The pair will keep its growth until it is above the Cloud.
The MACD left a positive territory. The histogram returned to a growth.
The price keeps growing. We expect a short term rebound downwards, to the level 1.5460 where we believe the pair will return to the growth. It is good opportunity to long from this point. Our growth targets are the levels of 1.5550 and 1.5670.