There was the Bank of England monetary policy last meeting minutes published which traditionally causes the volatility spike. The monetary regulator meeting took place on Thursday, 9 July and this time we received quite contradictory macroeconomic statistics.
It is noted the average wage increase in the United Kingdom which is a positive factor for the inflation. The payments balance release for the first quarter points out to the strong negative effect of the British pound revaluation.
The downward rebound, formed after the support level of 1.5550 testing looks quite weak. Volumes are in reduced zone and the pair did not exit the range formed between the levels of 1.5550 and 1.5670.
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 weak buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Dead Cross”. The upward movement will be until the price is above the Cloud.
The MACD histogram is in a neutral territory. The price is consolidating.
We expect the 1.5670 line break that will open the way for the buyers to 1.5775.