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

February 17, 2017
Golds rally may falter
The gold price has racked up its 2nd straight day of gains today on the back of US dollar weakness and doubts over an interest rate hike next month from the US Federal Reserve...
February 16, 2017
Where is black gold heading?
The Euro is slowly going down and this is not brought on by the Eurozone situation. Instead, this is fueled by the U.S. Dollar. Yesterday, Janet Yellen gave a speech in the Senate Banking Committee emphasising the fact that it Is not quite right to use the wait-and-see stance regarding the interest rate hike...
February 14, 2017
Will France exit the euro?
The Euro has come under pressure late in the European session today, after analysts warned of the huge costs that France would face should they decide to ditch the European currency...

Fort Financial Services Rating
FX Giants Rating
Grand Capital Rating
FxPro Rating
XM Rating
Vantage FX Rating

TropicalTrade Rating
Empire Option Rating
GTOptions Rating
Dragon Options Rating
EZTrader Rating
First Binary Option Service Rating