GBP/USD: The rise in the pair will continue

April 22, 2015

Current trend
On Tuesday, quotes in the pair GBP/USD rose again after minor correction on Monday. The USD was under pressure from ZEW business activity index in Eurozone, which was above expectations. In April, this index amounted to 64.8 points.
Today, the price will continue to rise up to 1.5050, despite the release of the minutes of the last meeting of the Bank of England, which was not favourable for the GBP. Bank officials believe that British economy will face deflation in the nearest months and inflation growth rate will be slow until the end of this year. They are also concerned about low rise in salaries, as although its growth is ahead of inflation, it is yet not sufficient. There will not be any important news today, which can affect movement in the pair. However, on Thursday, attention shall be paid to the British retail sales for March and preliminary business activity index in the manufacturing sector of the USA from Markit.

Support and resistance
The pair has broken down the upper line of Bollinger bands indicator, which can provoke correction to 1.4990 and 1.4945. On the other hand, the bands are diverging, which indicates upward trend.
Other technical indicators show the rise in quotes. MACD histogram is in the positive zone, crossing the signal line from top to bottom. Stochastic lines have crossed and turned upwards.
Support levels: 1.4990, 1.4945 and 1.4855.
Resistance levels: 1.5050, 1.5100 and 1.5160.

Trading tips
In the current situation it makes sense to open long positions after breakdown of the level of 1.5050 with the targets of 1.5100 and 1.5160. If the price consolidates below the level of 1.4990, it is advisable to open short-term short positions with the target of 1.4945

LiteForex Investments Limited Analytics

Publication source
LiteForex information  LiteForex reviews

January 23, 2017
Can Supreme Court Ruling Help GBPUSD Remain Bullish ?
Tomorrow, Tuesday 24 January, around 09:30 GMT, the UK Supreme Court will release the Brexit lawsuit Ruling, on whether the UK Prime Minister Theresa May will need the UK parliament’s approval to invoke Article 50 of the Lisbon Treaty, to leave the EU...
January 20, 2017
Cautious EURUSD Ahead of ECB Press Conference
USD, and the US government bond yields, surged last night following Fed president Janet Yellen’s speech to the Commonwealth Club in San Francisco...
January 19, 2017
Is equilibrium out of reach?
Let’s check what’s going on with Oil before turning our attention to the Russian Ruble. “Black gold” is forming a reversal pattern next to the key level of 52.10. The only matter is that this pattern is above the horizontal level, but the 52.10 level can potentially become the neckline of our pattern...

FIBO Group Rating
FXCM Rating
Z.com Trade Rating
Trade360 Rating
Larson&Holz IT Ltd Rating
FxPro Rating

TopOption Rating
Migesco Rating
First Binary Option Service Rating
Banc De Binary Rating
GTOptions Rating
EZTrader Rating