03, June 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound continued to lose its position against the U.S. currency on Thursday, the pair grew to the level 1.5250. Because of weak economic data, which include the lowering of U.S. GDP for the first quarter of 2013 to the level of 2.4% and the Initial Job Claims growth to the level of 354.000 U.S. the currency positions got weakened.

The growing demand on the British currency gave the support to the pair. The pair was able to reach the level 1.5240 then it started a side correction. On Friday, the pair slipped slightly to 1.5140.

The poor UK economic news almost had no impact on the pair. Today we should pay attention to the USA data as well as news on the labor market in Europe which may give the dynamics for the pair.

Ichimoku Analysis

Chinkou Span is below the price chart. Tenkan-Sen line is below the Kijun-Sen. Tenkan-Sen is directed upwards, Kijun-Sen is horizontal. The Cloud is directed down.

Bollinger Bands are broadening.

MACD is in a negative zone on the daily chart, the histogram is below the signal line and is directed downward.

Trading recommendations

We do not expect a trend reversal, the pound falling to the resistance level 1.5250 (1.5310) is more possible. The pair is expected to return to local minima 1.5030 (1.4960).

We recommend to place pending orders from 1.5245 (1.5310) with take-profit at 1.5100. (1.5030).