GBP/USD Weekly Analysis 15 May 2017

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CHARTING

The crucial points are:

1

The volatility in GBP/USD on Friday, caused by the publication of US retail sales and inflation reports publication, allowed the currency pair to reach and unsuccessfully test the 1.28400 level of support. Both reports showed worse than expected data, the price managed to bounce off this support level and finally close near to its daily opening price. This week has started positively for GBP/USD pair, which could be attributed to British PM Theresa May anticipated speech later this afternoon.

Charting outcome: Neutral – Marginally bullish       

INDICATORS (computerized T.A)

The crucial points are:

2

3

The indicators are signalling that a strong uptrend has occurred. The moving averages have almost kept the same slopes, while both the positive and the negative dynamic have risen. The trend dynamic has fallen by -17.87%, whilst the market’s volatility has remained unchanged. Finally, the oscillators have passed into marginally overbought territories.

Indicators outcome: Bullish – Marginally bullish            

CONCLUSION

Indicators and charting are in favour of the positive outlook. However, the charting suggests the neutral outlook as well. If the price appreciates higher than 1.29600 level of resistance, the next resistance could occur at 1.30700 level. On the contrary, if the price breaks lower than 1.28400 level of support, the next support is possible to be the 1.27300 level.