04, September 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

GBP/USD continues to show preference towards long positions. Such tendency was observed at the beginning of last week. It found the reflection in the current movement of the pair.

GBP/USD is within a reach of 1.5420. Trade range is probably between 1.5425 and 1.5600.

Ichimoku Analysis

During the corrective decline from the resistance level 1.5720 pound broke through the Tenkan -sen and reached the support 1.5420 near the Kijun -sen. Then the price jumped up and consolidated over the level above. The Kijun -Sen and Tenkan -Sen are crossed in a "golden cross" on a daily chart. Both trend lines move horizontally parallel to each other.

Bollinger Bands indicator shows a downward movement, the bands are directed down.
The MACD histogram is located in a negative zone near to the zero level.

Trading Recommendations

We can see that the pair continues to go in a wide ascending corridor and went down to its lower boundary on the day chart. It is the most probable that the pair will make a start from the level of support 1.5500 and will continue its growth to levels 1.5750 and 1.6000. The increase in demand for British pound and favorable macroeconomic statistics can support this growth.