01, April 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

On Friday, the GBPUSD trading day ended almost in vain as the trading was at around the opening. Lull in the market is due to the Easter holidays.

The pair is being traded above the Ichimoku cloud. The buy signal is strong and confirmed.

The Tenkan-Sen line is above the Kijun-Sen. Tenkan-Sen is going up, Kijun-Sen is horizontal. The Cloud stopped growing and is neutral. The pair may soon form a “golden cross”.

It is possible that the pair will show a sideway movement or will try to continue a short-term growth. If traders have to choose between the euro and the pound, their choice is likely to fall on the pound, as its macroeconomic level has fewer problems.

If north movement resumes the pair will bounce off the support level 1.5180 and continue to rise up to 1.5250.

In the case of falling the pair will go to the cloud and then to the level 1.5140.

Bollinger midline keeps growing. The price range started to broaden. We recommend to wait until the pair sets its direction.

MACD is growing confirming the buy signal.

Trading recommendations

We can speak about uptrend return only after a confirmed break through the level 1.52.

If the pair returns to the northern movement its goal will be 1.5180, then 1.5250.

In case of the southern movement the pair enters the Cloud and goes to 1.5140.

When the price moves we should move and stop-loss level. When we get profit of 20-30 points stop loss should be placed into a break even.

When you open positions consider the fundamental analysis and the time of its release as well.