03, April 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pair is being traded below the Ichimoku cloud working out a “golden cross”.

The Tenkan-Sen line is above the Kijun-Sen. Tenkan-Sen and Kijun-Sen are going down. The Cloud stopped growing and is turning down.

It is possible that the pair will show a sideway movement or will try to continue a short-term correction as the result of the yesterday fall.

The pair is going down everything that bulls reached the last week came to naught. Traders do not want to risk before the meeting of the ECB which will take place April 4.

Bollinger indicator is slowly going down. All its bands started to turn down. The price range is wide.
MACD has finished growing and entered the negative zone.

Trading recommendations

The buy signal is cancelled. The pair returned to the downward movement. The сloud is penetrated, all the indicator lines left far behind.

The first goal of a downward movement is the level 1.5065. If the pair consolidates at it the pound will continue falling to 1.4940.

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.