GBP USD Technical Analysis | GBP USD Trading: 2015-04-23 | IFCM
IFC Markets Online CFD Broker

GBP USD Technical Analysis - GBP USD Trading: 2015-04-23

Expecting the end of sideways movement

On Wednesday the minutes of April 9 Bank of England Monetary Policy Committee meeting were released. The records indicated the policymakers were more bullish on the prospects for higher inflation as they expected the picking up of growth in euro-zone to increase demand for British exports, helping the Pound. The policymakers noted that the sharp fall in inflation in recent months could be partly the result of Pound strength and the inflation may rebound more strongly when downward pressures on prices subsided. The release of minutes resulted in a boost to the bullish momentum that has pushed the Pound higher in the last week. On Thursday economic data including retail sales for March will be released. We expect an increase in volatility after the data are released, with anticipated rise in retail sales providing additional bullish momentum for the Pound.

GBP/USD

The GBPUSD pair had been moving within a bearish trend which is confirmed by the slope of the long term Donchian channel and the movement of the RSI-Bars indicator in the downtrend channel. But then it retraced on March 18 as it bounced from the lower channel and started sideways movement. On April 13 the pair started rising, with the RSI bars indicator and later also the Parabolic indicator confirming the new uptrend. We deem the bullish momentum will continue and a pending order to buy can be placed above 1.5054, which corresponds to the upper Donchian channel. The stop loss can be placed at the last Parabolic signal, which has formed at 1.4610. After pending order placing, the stop loss is to be moved every day near the next fractal low, following Parabolic signals and Donchian channel. Thus, we are changing the probable profit/loss ratio to the breakeven point. If the price meets the stop loss without reaching the order, we recommend cancelling the position: market sustains internal changes that were not considered.

PositionBuy
Buy stopabove 1.5054
Stop lossbelow 1.4610

IFCM Trading Academy - New era in Forex education
Pass Your Course:
  • Get Certificate
trading academy

The best trading conditions and high-level services for our clients

We are ready to assist you on any issue 24 hours a day.

Note:
This overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or а recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.

Close support
Call to Skype Call to WhatsApp Call to telegram Call Back Call to messenger