Currency Analyst since 2010

GBP/USD: eventful day

GBP/USD is trading below $1.5150, the level where it closed yesterday.

The pair has been capped by the daily Ichimoku Cloud, the bottom of which lies at $1.5170. The next resistance levels lie at $1.5200, $1.5220 and $1.5270. Support is at $1.5130, $1.5100, $1.5070 and $1.5050.  

The pair isn’t much oversold yet and there’s scope for further decline, yet divergence at H4 MACD means that there may be swift pullbacks on the news – and there will be a lot of it.

At 08:30 GMT Britain will release retail sales data (forecast 0.0% after the previous reading of -0.7%) and MPC May meeting minutes. According to TD Securities, “we could see some or all of those who had previously voted for QE advocating for policy on hold for now, until they assess in which direction the new Governor will want to take policy” (Carney takes over as the central bank’s governor in July).

Later today in the US watch Fed Bernanke’s testimony before the Congress and the FOMC minutes.

Chart. H4 GBP/USD

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