03, October 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound has stopped because the UK economy shows different figures. The British pound can not keep grow forever. No other currency has not been so hot this summer than a pound, which rose by 10% from the July low to a high of $ 1.6260 yesterday.

Many analysts have warned that sterling is at very high levels above $ 1.60 and can be vulnerable if the UK data disappoint the market.

GBP/USD rebounded from 1.6260 resistance almost at a figure, indicating that it is probably a potential medium-term top. There is a strong resistance 1.6295/6300. It can inhibit the growth, but the break up can not be ruled out. And yet, the pound provides opportunities for sale with stops above 1.6300.

The current buy signal is strong and confirmed, as Chinkou Span is above the price and the price broke the Ichimoku cloud. The Kijun -Sen and Tenkan -Sen are crossed in a "golden cross" on a daily chart. Both trend lines are growing parallel to each other. The cloud is growing.

Bollinger Bands shows an upward movement. The bands are widening and going up. We should consider a long position.
The MACD histogram is growing.

Trading Recommendations

If the price breaks 1.6160 it may go to the level of support 1.6140, which in its turn opens the way to 1.6100 - 1.6050. If the price does not stop at 1.6060 it will go to 1.6000.