03, December 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound also consolidated into a side corridor versus the dollar. Confidence to the sterling remains quite high due to the ongoing positive information on the economy and the absence of negative political statements.

The pair broke the resistance at levels 1.6300-1.6380, thus opening the way to testing key resistance 1.6750. The level 1.6313 will probably act a supporting role, limiting a short-term correction.

Tenkan-Sen and Kijun- Sen have formed a «golden cross», Kijun-Sen is directed upwards, Tenkan-Sen is directed up as well, both lines are horizontal. Ichimoku cloud has changed its direction, Chinkou is below the chart, the price is above the Ichimoku cloud. The upward movement will be continued as long as the Kijun-sen is below the price.

Bollinger bands are widening, directed upwards.
MACD histogram is located in the positive zone and slightly above the signal line, the indicator continues growing and thus giving a signal to buy.

Trading recommendations

The volumes of rising growth indicate a clear divergence. Therefore, this increase of the British pound may not be very long. However, the main target is the weekly resistance level 1.6500. Should the pair continue falling the target is 1.6313.