02, April 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pair is being traded above the Ichimoku cloud forming a “golden cross”.

The Tenkan-Sen line is above the Kijun-Sen. Tenkan-Sen and Kijun-Sen are going up. The Cloud continues growing.

It is possible that the pair will show a sideway movement or will try to continue a short-term growth.

The pair resumed the upward movement, bounced off the support level 1.5180 to 1.5250 but could not reach the latest.

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 as a correction may start.

MACD is growing confirming the buy signal.

Trading recommendations

We are unlikely to see a strong activity till the end of the week. At the end of the week we expect the Bank of England interest rate decision and a number of U.S. economic data should be released. The negative statistics in Europe can support the pair as well.

If the pair returns to the northern movement its goal will be 1.5250, then 1.5260.

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.