29, July 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Yesterday the main event was the second quarter UK GDP publication. The Bank of England pointed to an economic growth by 0.7% in its monetary policy last minutes. These data came out at the forecast level of 0.7% q/q and 2.6% y/y. The Federal Reserve interest rate decision can affect the pair dynamics which will be published on Wednesday evening. The resistance level of 1.5550 could not stop buyers. The level breakthrough was on the low volumes and opened the way to the level of 1.5460 and 1.5390 testing.

The price is finding the first support at 1.5550, the next one is 1.5460. The price is finding the first resistance at 1.5670, the next one is 1.5775.

The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement and form a “Dead Cross”.

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

Trading recommendations

We expect a rebound. The levels of 1.5460, 1.5390 are the rebound targets.