23, April 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Bank of England monetary policy last meeting minutes will not be able to provide strong support for the British pound.

The UK inflation expectations remain low despite the energy prices increase. The average earnings reduction is to blame as well as the British pound revaluation against the euro.

The price is finding the first support at 1.5015, the next one is 1.4920. The price is finding the first resistance at 1.5100, the next one is at 1.5200.

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 and the Kijun-sen show an upward movement. The upward movement will be until the price is above the Cloud.

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

Trading recommendations

We expect the 1.5015 line break that will open the way for the sellers to 1.4920, further then towards 1.4800.