24, April 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Traders ignored the Bank of England monetary policy last meeting negative minutes. The monetary regulator lowered the short-term inflation forecasts amid the taxes decline, the pound revaluation as well as the wages reduction. It was noted that there are high long-term risks for a normal growth. But instead of the British pound decrease, we saw the quotations strong growth which indicates the presence of major buyers.

The level of 1.5015 breakthrough was on the increased volume. The pound growth stopped above this level.

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 shows an upward movement and the Kijun-sen shows a horizontal 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

The potential decrease targets are two levels of support: 1.5015, 1.4920.