29, May 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

We got the UK GDP assessment for the first quarter. The unemployment rate reduction with the private consumption and industrial production growth in March allows us to count on the data output within the forecasted medians. Besides the quarterly economic forecast, the Bank of England lowered the GDP growth rate for 2015. The index came out at the level of + 0.3% q/q + 2.4% y/y without revision.

Having broken the strong support level of 1.5465, the British pound continued its decline.

The price is finding the first support at 1.5300, the next one is 1.5200. The price is finding the first resistance at 1.5390, the next one is at 1.5490.

There is a confirmed and a strong sell signal. The price is under the Cloud and it is under the Chinkou Span. The Tenkan-sen and the Kijun-sen show a downward movement. The downward movement will be until the price is under the Cloud.

The MACD histogram is in a negative territory. The price is consolidating.

Trading recommendations

The upward bounce potential target is 1.5390. If the price falls it will get to 1.5300, 1.5200.