22, May 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Bank of England monetary policy meeting minutes have supported the British pound amid the fact that the monetary regulator raised its GDP growth estimate for the first and the second quarters this year. Two MPC members were inclined to tighten the monetary policy, however, they voted in favor of its preservation in its present form. It is worth noting that the bond market has reacted negatively to this release - the long-term and the short term securities differential has increased which points out to the fact that the soft monetary policy will not be finished in the short term.

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 at 1.5775.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement

The MACD histogram is in a neutral territory. The price is growing.

Trading recommendations

The pair is close to the strong resistance level of 1.5670. The downward bounce potential target are 1.5550 and 1.5460.