Current trend

The quotes in the pair GBP/USD continues to rise slowly and have already reached the highs since December last year at the level of 1.5670. On Tuesday, the Pound was supported by positive British macro-economic statistics. Industrial output in the UK has grown by 0.5% in March. GDP growth can amount to 0.4% as per NIESR forecast.

Today, investors are waiting for the speech of Mark Carney, the head of the Bank of England and inflation report from the Bank of England. Outcome of these important events can have strong impact on the pair GBP/USD. In the afternoon, US retail sales statistics will become known.

Support and resistance

On the four-hour chart technical indicators give mixed signals. MACD histogram is in the positive zone; however its volumes are slowly decreasing, showing that buyers’ activity is declining and the pair is approaching the correction phase after the long-lasting growth. Bollinger bands are narrowing, which is the indication of the uptrend.

Resistance levels: 1.5704, 1.5755 and 1.5800.

Support levels: 1.5630, 1.5550, 1.5500 and 1.5450.

Trading tips

Buy positions can be opened if the price consolidates above the level of 1.5755. In this case the pair can go up to the resistance level of 1.5800. If downtrend develops, sell positions can be opened after breakdown of the level of 1.5630. In this case the nearest target of the “bears” will be the levels of 1.5550 and 1.5500.

GBP/USD: review and analysis

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