04, June 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Bank of England is expected to stay away from making changes in the monetary policy as the economic data will likely to show a continued economic recovery of the country which started at the beginning of the year.

The meeting of the Committee will be the last for Mervyn King. He's going to leave his post in the end of June. Many economists expect the call for increased quantitative easing will be louder when Mark Carney substitutes Mervyn King.

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 positive zone now and keeps growing.

Trading recommendations

The pair continues growing. The first goal of the upward movement is 1.5360. The price just tested this level yesterday. To continue the growth the pair needs to consolidate on it, this will open the way to the level 1.5430.

It might be a correctional movement down but the pair will not go below the middle Bollinger Bands line.

In the case of the falling we recommend selling from 1.5300 with a stop loss at 1.5389 and take-profit at 1.5015.