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Coleman: 4 reasons why GBPUSD has capped
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After the Bank of England cut its inflation forecast for 2015 to 0.5%, GBPUSD surged over 160 points. Ian Coleman from First 4 Trading says that he does not expect this buying trend to continue and outlines the four reasons why GBPUSD could be headed for a corrective move lower.
The weekly Marabuzo line is located at the mid-point between the open and the close at USD 1.5442.
The Ichimoku cloud on the daily chart is likely to add resistance.
RB bespoke resistance near USD 1.5418
There are signals of bearish divergence on the 1 & 4 hour chart.
Ian believes that GBPUSD buying will be capped for these four reasons and is looking to sell on a break of USD 1.5390. He is targeting a move to USD 1.5313 and USD 1.5250. A stop can be placed at USD 1.5450.
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