13, March 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

The other day the pound stood out among others currencies. The pair overcame the Friday's low (1.4886) still the pair easily recovered its positions and is trading at 1.4903.

The reason of this fall was most likely the politicians: the Chancellor's speech about the budget along side with the speculation that the Treasury may allow the bank to feel free to reach target CPI at 2%.

The pair is still below the moving averages with periods 20 and 34, which are directed downward and point to the continued bearish (medium term), at the same time being the resistance levels 1.4965 and 1.4997.

MACD histogram is still in negative sector while indicating some stabilization, thus signaling a possible correction.

Despite the mixed signals, as a confirmation of what the forex market for this currency pair could increase again bearish, you must wait for the breakdown of local minimum 1.4865 that could open the way to the levels 1.4830 and 1.4796.