GBPUSD Technical analysis 14.07.2016

GBPUSD

The pair is consolidating prior to the Britain's Central Bank decision on monetary policy. The market expects the rates to be lowered to 0.25% as well as expansion of stimulus measures. If the rates are lowered, but stimulus not expanded, it can provide British Pound with additional support. The situation where the rates are lowered and stinulum expanded will pressure the pair. 

The price is higher than the middle Bollinger band, higher than SMA5 and SMA 14. RSI resides above 50% level and gradually rising. Stoch are leaving the oversold zone.

Trading recommendations: Buy the pair if the Britain's Central Bank will keep the rates unchanged OR decides not to expand the stimulus whith probable targer of 1.3500. Sell the pair if the rates are lowered and stimulus expanded.