The UK inflation release has shown the CPI strong strengthening. The core inflation rose up to 1.2% in annual terms and in this regard it can be concluded about the wages growth strong influence. Against this background, the UK/US inflation indicators are again declining which is a positive factor for the British currency.
Buyers once again raised the price to the resistance level of 1.5670. The level testing was followed by the previous highs update, but without the subsequent breakthrough. The pair rebounded downwards.
The price is finding the first support at 1.5550, the next one is 1.5460. The price is finding the first resistance at 1.5670, the next one is 1.5775.
There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen shows an upward movement and the Kijun-sen shows a horizontal movement. The upward movement will be until the price is above the Cloud.
The MACD histogram is in a positive territory. The price is correcting.
We expect the level of 1.5670 break that will open the way for the buyers to 1.5775, further then towards 1.5950.