03, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pair continues to grow against the dollar due to the strong PMI data in the manufacturing sector of the United Kingdom. The index rose to 49.8, higher than the forecast was. The growing was also caused by weak data on the U.S. labor market.

GBP/USD reached its maximums at 1.5605, after which there was a pullback and a correction. We should pay special attention to the economic news from the United States, including the number of initial claims for unemployment insurance.

The pair shows lateral movement near important resistance level 1.5570. A correction to 1.5460 is possible after which the pair may continue to grow, but it is unlikely that the pound will be able to break through 1.5600.

The Tenkan-Sen is above the Kijun-Sen. The Tenkan-Sen and the Kijun-Sen are directed sideways. The Cloud is directed upward.

"Bollinger Bands" are directed up, we recommend going long.
MACD is growing, the histogram is in a positive zone.

Trading recommendations

The pair continues to move in an upward channel with a minor downward correction.

The target of the northern movement is 1.5660. The price will go to it having consolidated at 1.5570.

Also, it is also possible that the pound will decline slightly against the dollar to the initial support level 1.5460 (1.5410), and then resume the upward movement.