25, March 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

During the day traders may win back the UK and the US inflation releases.

Last week the Bank of England signaled to traders that the inflation increase is directly proportional to the wages rapid growth. Taking into account the fact that the UK average salary decreased in January it is now extremely difficult to expect the inflation surge.

Buyers do not hurry to continue the upward trend after the level of 1.4920 breakthrough. The price rebounded downwards and the trade stopped under the resistance level of 1.4920.

The price is finding the first support at 1.4800, the next one is 1.4650. The price is finding the first resistance at 1.4920, the next one is at 1.5015.

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

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

Trading recommendations

The potential decrease targets are two levels of support: 1.4800, 1.4650.