23.04.201504:23 Forex Analysis & Reviews: Technical analysis and trading recommendation of GBP/USD for April 23, 2015

The Monetary Policy Committee meeting held on 8 and 9 April 2015. A fall in energy prices had been the largest single contributor to declines in headline inflation in the United Kingdom and in many other countries since summer 2014. The Committee set monetary policy to meet the 2% inflation target in the medium term and in a way that helped to sustain growth and employment. The Committee's guidance on the likely pace and extent of interest rate rises was an expectation, not a promise. Before the general election on May 07, 2015 the BoE officials voted unanimously to keep interest rate at 0.5%. Until the new government has been formed we cannot expect news from the monetary policy committee.

Today, traders eye on the UK retail sales. The March readings gave an optimistic look on the retail sale.

Technical view:

The pound surged against USD towards 50Dsma. At yesterday's session, the cable breached the 50dsma in intraday, but was unable to close above that. The pound is trading at 1.5024 at Thursday's Asia's session; compare to 1.5037 Wednesday's closing. In the four-hour chart, the cable has been making bullish inverse head and shoulder pattern. The price has been trading at the verge of the breakout. At yesterday's session, the cable exactly rejected the upper end of the neckline. In case, if the price taken out the neckline we can expect further bullish bias towards 1.5160 March 18 high initially. Intraday support finds at 1.5010. We recommend selling below 1.5000 with targets at 1.4975 and 1.4940. The 34hrsma finds at 1.4935 below this 1.4850 is the major support for coming days. On the higher side, we recommend buying above 1.5080 with targets at 1.5100, 1.5150, and 1.5160 initially, and at 1.5190 and 1.5210 later.