19, March 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Bank of England monetary policy last meeting minutes did not support the British pound. In early March the unemployment reduction with the average earnings growth have intensified the UK inflation expectations. From the American monetary regulator, on the contrary, we expected "pigeon" rhetoric in relation to the monetary policy tightening.

The support level of 1.4650 has twice stopped the sellers. The first level testing was followed by a slight correction upwards; the second one has led to the short-term consolidation and a sharp increase.

The price is finding the first support at 1.4650, the next one is 1.4500. The price is finding the first resistance at 1.4800, the next one is at 1.4880.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen shows an upward moveent and the Kijun-sen shows a downward movement. The downward movement will be until the price is under the Cloud.

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

Trading recommendations

The buyers need to break above 1.4920 for a steady growth. The way to the marks 1.5015, 1.5100 will be opened after this breakthrough.