22, January 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Bank of England monetary policy last meeting minutes is in the center of traders’ attention. On the one hand, the UK inflationary pressure compression because of the lower hydrocarbon prices indicates the monetary authorities negative expectations in the short term. On the other hand, the unemployment reduction and the wage growth will increase private consumption in the long term that will spur the CPI growth.

Having not reached the support level of 1.5015, the pound turned upwards towards the correction and rose to the level of 1.5200. The pair fell from this level and tested the support level of 1.5100.

The price is finding the first support at 1.5100, the next one is at 1.5015. The price is finding the first resistance at 1.5200, the next one is at 1.5300.

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 movement 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 falling.

Trading recommendations

The potential growth targets are the resistance levels: 1.5300, 1.5400.