01, February 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General picture

The analysis shows that the pair is still entrenched within Ichimoku cloud. The pound worked out the first level of resistance which is located inside the cloud, a buy signal slightly increased.

The current buy signal is confirmed and weak as Chinkou Span entrenched above the price chart and the price is within Ichimoku cloud.

At the moment, the first goal of the upward movement is the first resistance level 1.5879 which is already worked out. When the price overcomes Ichimoku cloud the upward movement may continue to the second resistance level – 1.5959.

The upward movement is maintained as long as the price is above Kijun-sen (1.5775) if the price fixes below this line a buy signal would weaken and a downward movement can start.

Chinkou Span is above the price chart that confirms the current buy signal.

Bollinger Bands show an upward movement, the bands widen and directed upwards, thus you have to consider only long positions.

MACD is up, indicating an upward movement, if the indicator turns down that may become signal of a possible downward correction. Another signal of a correction – the price bounds from Senkou Span.

Trading recommendations

Please be advised to consider long positions to the target – 1.5879. When the price overcomes this level you can open positions for the second target –1.5959.

We recommend you to put stop-loss below 1.5775 level and as the price grows to move it after it.

When you get profit of 50 - 60 points we recommend you to place stop-loss to a breakeven. Orders can be closed manually if the price rebounds from the top of Ichimoku cloud or MACD turns down.

Take-profit can be placed just below the target level - 1.5870 and 1.5950.