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    Technical analysis of GBP/USD for July 23, 2015

    BoE minutes:The Committee set its monetary policy to meet a 2% inflation target in the medium term, and in a way to help to sustain growth and employment. As expected, the twelve-month CPI fell to 0.0% in June after a 0.1% rise in May .

    The Bank of England should maintain the stock of purchased assets financed by the issuance of central bank reserves at £375 billion.

    BoE July minutes revealed that the rate is expected to be raised.

    The US existing-home sales increased in June to the highest level in eight years. All major regions experienced sales gains in June and have now risen above year-over-year levels for six consecutive months.

    Today, traders eye UK retail sales and US unemployment claims. We expect UK retail sales to come out on a positive side.

    Technical overview: Amid recent developments, the cable trading pattern still favors bulls. Earlier, we had forecasted that the cable should re-test 1.5500, but it hit a low at 1.5530 changing its direction. We have been advising buying on dips with sl 1.5450. Now, the stop loss moved to 1.5530. The cable has been moving towards higher lows and higher highs in the daily and four-hour charts.

    After a 6-day consolidation, the cable finally closed above 20Dsma. We have been forecasting: "A strong close above 1.5600 20Dsma is likely to remove bulls back on track to 1.5670 initially and to 1.5700 later", we still remains with the same strategy. In case follow up buying is available today, bulls are likely to breach the earlier cap 1.5700. In this case, gates to 1.5800 will be open. The cable broke the 3-month ascending trendline and is still trading below that.

    The 50Wsma is seen at 1.5600, and the 20Wsma is found at 1.5270.

    Bulls: The cable posted a break from the bullish broadening wedge, closing above that line. The trend favors buying on dips with sl 1.5530 earlier recorded was sl 1.5450. The 50Dsma is found at 1.5560, and 100Dema is found at 1.5450. Intraday support is found at 1.5580. Resistance is seen at 1.5650 and 1.5675.

    Intraday buying is available above 1.5650 with targets at 1.5670, 1.5700 and 1.5750. We remain bullish in the long term.

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