17, July 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The unemployment rate in Britain increased by 0.1% at the end of May. The core inflation is at 0.8%, the unemployment rate is at 5.6%. We can forget about the rate increase for a while with such statistics.

The Bank of England Governor Mark Carney's made his speech yesterday still there was no reaction at the market after his speech.

The short-term resistance level of 1.5670 stopped the upward pound trend. The level test has led to the downward correction formation that is aimed to support level of 1.5550.

The price is finding the first support at 1.5550, the next one is 1.5460. The price is finding the first resistance at 1.5670, the next one is 1.5775.

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 a horizontal 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 potential rebound targets are the resistance levels of 1.5670, 1.5775.