20, May 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The National Statistics Office has published the UK April inflation report. The energy cost increase with the labor market positive trend points out to the consumer price index growth. But the negative data put the British pound under a pressure. The US construction sector moderately positive data may force some traders to take profits on the long positions.

The British pound is correcting against the US dollar amid the low volatility. The correctional price reduction was on the low volumes. There was the intermediate support level of 1.5550 breakthrough.

The price is finding the first support at 1.5460, the next one is 1.5390. The price is finding the first resistance at 1.5550, the next one is at 1.5670.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows a downward movement and the Kijun-sen shows a horizontal movement and form a “Dead Cross”.

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

Trading recommendations

The pair can decrease to the support level of 1.5390.