01, March 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound strives to close the gap which was formed on Monday. Yesterday the pair was traded in a range between 1.5240 and 1.5146 levels.

The Tenkan-Sen is under the Kijun-Sen and the price is traded between them. The Chinkou Span is under the price chart, the Ichimoku Cloud is descending. The downward movement is actual as long as the price is below the Kijun-sen (1.5161). If the price continues to move up to the cloud, it can weaken the downward movement, as a result a "golden cross" can be formed.

The closest level of support is the line Tenkan-Sen (1.5177), the resistance level is the line Kijun-Sen (1.5161). We have a strong sell signal. It is a good time to open short positions.

Chart analysis and indicators show a bearish mood if traders.

D1 chart timeframe confirms the downward movement.

Bollinger Bands confirms a southern movement, the bands are widened and going downward.

MACD is down that indicates a downward movement as well.

Trading recommendations

The first goal is the level 1.5051. If the price is fixed at this level, it will go to 1.4941.

We recommend placing stop loss above 1.5240. Profit target can be placed just above the target levels.

An alternative scenario in case of continued correction the price will move up towards the cloud.