GBP/USD: analysis and forecast

1. Current trend of GBP/USD

On Wednesday the pair GBP/USD has hit three-week lows at 1.5428. However the speech of Mark Carney helped the Pound to rise again. Head of BOE announced that British economy is recovering but it may take three years for the unemployment rate to decrease down to 7%. After the announcement the pair has gained 100 points and gone up to the level of 1.5540. Today the pair returned to fall once again: investors are waiting for the US GDP data release. According to experts the rate will increase up to 2.2% and the pair will be pushed down.

2. Important levels: support and resistance

The pair is trading around the level of 1.5520, which coincides with middle MA of Bollinger Bands. The most probable scenario is the downward movement towards support level of 1.5400 and then rebound. I would recommend to open short trades at the level of 1.5500 and Take Profit orders at 1.5400.

3. Technical indicators

Indicators on the daily chart give us controversial signals, showing some некоторую uncertainty of the market before important releases. Bollinger Bands are directed upwards, but the price chart has reached MA and can soon enter the lower band MACD histogram is in overbought zone, its volumes are decreasing. Stochastic lines are directed upwards after crossing, giving us a signal to buy.

Dmitriy Zolotov
Analyst of LiteForex Group of Companies

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