17, February 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pair is supported by the market’s negative attitude towards the dollar and the demand for the British pound in the declining euro/pound. The pair is also supported by the Bank of England Monetary Policy member statement that the UK interest rates can be increased sooner than investors expect, as in the next two years inflation is expected to be close to the central bank's target level of 2.0%.

There was the resistance level of 1.5400 breakthrough amid the raised volume. But the pair couldn’t fixate above this level and it rebounded below it.

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 shows a downward movement and the Kijun-sen shows an upward movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

The approach to the level of 1.5300 may lead to a price rebound upwards. The potential rebound targets are the resistance levels of 1.5400, 1.5500.