26, February 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Apparently, the Bank of England chose not to focus its attention on the short-term inflation and made it clear that the next step would be the interest rates increase. The Yellen speech can affect the pair movement.

Due to the rebound from the support level of 1.5300 the British pound confidently continued its upward trend, breaking through the resistance level of 1.5400 on its way. The pair tested the resistance level of 1.5510.

The price is finding the first support at 1.5400, the next one is 1.5300. The price is finding the first resistance at 1.5510, the next one is at 1.5620.

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 a horizontal movement and form a “Golden Cross”. 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 growth target is the resistance level of 1.5620.