GBP/USD: analysis and forecast for May 22, 2015

May 22, 2015

Current trend

Yesterday was a favourable day for the British Pound. The pair has gained 150 points and reached the level of 1.5700. Demand for the Pound was supported by the positive macro-economic statistics: retail sales rose by 1.2% in April against the forecast of 0.4%. On annual basis this index rose by 4.7% versus expectation of 3.8%.

In addition to the above factors interest to the GBP is growing due to the unclear situation about the timing of the interest rate increase in the USA. Despite the assurance of the US FOMC members that slowdown in the economic growth is of the temporary nature, the indicators show the opposite. Labor market statistics, which demonstrated positive dynamics in the past few months compared with the other macro-economic data, was negative yesterday. According to the report by the US Department of labor the number of initial applications for unemployment benefits has increased from 264 thousand to 274 thousand. Sales on the secondary housing market fell from 5.21 million to 5.04 million.

The US inflation data will become today. Analysts expect that consumer price index will fall from 0.2% to 0.1%. On annual basis this index shall remain unchanged showing the deflation of 0.1%.  In case of even more negative statistics, it will provide significant support to the pair GBP/USD. 

A speech of the head of the Bank of England is also scheduled for today. It can shed the light to the future plans of the regulator for the British monetary policy.

Support and resistance

Resistance levels: 1.5700 (yesterday’s highs), 1.5814 (highs of 14 May), 1.5900 (moving average with the period 200), 1.6000 (psychologically important level).

Support levels: 1.5631 (Asian session lows), 1.5460 (middle line of Bollinger bands), 1.5340 (Fibonacci retracement of 38.2%), 1.5190 (Fibonacci retracement of 50%).

Trading tips

Buy positions can be opened after breakdown of the level of 1.5700 with the first target of   1.5810 and the second one at 1.5900. Sell positions are advisable from the level of 1.5650 with the targets of 1.5460 and 1.5350. 

Publication source
LiteForex information  LiteForex reviews

December 7, 2016
Oil ma pull back to $40
The oil price fell for the first time in 4 days today as skepticism creeped in over some OPEC member’s commitment to keep to their end of the deal and cut production...
December 6, 2016
Shale sector tries to reap the gains of the OPEC deal
The prices extend gains after OPEC’s output cut deal brings short-term optimism. Forward market shows that the US oil producers are rushing to lock the profit, selling oil contracts for above $50 a barrel at the start of 2018...
December 5, 2016
Crisis Lite
The Italian referendum on constitutional reform saw voters reject the proposals in front of them, in a fairly decisive manner. As such, Italian PM Renzi will tender his resignation today and this became part of the issue...

OctaFX Rating
XTB Rating
FBS Rating
FXCM Rating
Z.com Trade Rating
FxPro Rating

OptionsXO Rating
Anyoption Rating
EZTrader Rating
Banc De Binary Rating
Porter Finance Rating
OptionBit Rating