04, December 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

GBP/USD pair began Monday with the correction after Friday's growth and reached 1.6350 mark. The UK Manufacturing PMI were published on Monday, the index grew to 58.4 p., reflecting a sharp rise of optimism in the British industry. The data supported the pound and helped to slow down the correction.

The pair went back to growth, the price moved up along the midline of «Bollinger Bands», which acted as her support. The key mark is the level 1.6410, in case of its breakdown the price may continue its upward movement to the level 1.6435.

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 directed upwards and taper, predicting high volatility.
MACD histogram is in positive zone, its volume decreases.

Trading recommendations

We recommend to open long positions with take-profit in the area 1.6435.