16, February 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The currency market major players reacted positively to the quarter inflation report despite the fact that the Bank of England governor pointed out to the monetary policy easing if necessary. Mark Carney noted that the British banks recapitalization had made the key interest rate decrease possible.

There were the resistance level of 1.5300 and the level of 1.5400 testing.

The price is finding the first support at 1.5300, the next one is 1.5200. The price is finding the first resistance at 1.5400, the next one is at 1.5510.

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 and the Kijun-sen show a horizontal movement and form a “Golden Cross”. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

The pair is close to the strong resistance 1.5400. If the pair breaks it we expect the growth to 1.5510.