The UK will not please traders with the interesting macroeconomic releases and in this regard, the traders’ attention will be drawn to the statistics from overseas. Leading indicators point out to the personal consumption expenditure weak data which is a negative factor for the US dollar. The low domestic demand indicates the weak GDP and therefore the dollar loses drivers for the quotations growth.
The bond market also confirms the bullish trend for the British pound - the UK 10-year bond yields are growing in relation to the United States and Germany ones which is a positive factor for the pound.
The pound has been consolidating above the support level of 1.4800 the whole previous week. The short-term tests were on reduced volume and were followed by the small rebounds upwards.
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.
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 horizontal movement. The downward movement will be until the price is under the Cloud.
The MACD histogram is in a neutral territory. The price is correcting.
We expect the 1.4800 line break that will open the way towards 1.4650.