23, October 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound fell against the US dollar after the Bank of England meeting minutes publication which pointed to the soft policy tendency.

McCafferty and Will, who support the interest rates increase, said that the UK economic situation justifies proposed decisions. In their view, the CPI index below the target level is due to the currency course growth and the commodity prices decrease.

The first support is at 1.5390, the next one is 1.5300. The resistance is at the level of 1.5460, the second one is at 1.5550. The pair is still in a flat.

We have a weak buy signal; the price is in the Cloud. The pair is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. We have not confirmed “Dead Cross” signal.

The MACD is in a neutral territory. The histogram is decreasing.

Trading recommendations

The pair entered the Cloud that might be a bearish signal. If the pair goes through the Cloud and consolidates below of it we could get the sell movement. The levels 1.5390 and 1.5300 our first targets.