05, July 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Traders are disappointed by the final GDP data. The pair shows a steady falling since the second half of June. July the 3rd the pair reached the lowest level since May 31 at 1.5130.

The pair continues to work out the "dead cross". The current sell signal is strong and confirmed, as Chinkou Span is below the price, and the price is below the Ichimoku cloud.

At this point the downward movement is targeted to the support level 1.5070. After passing this target the downward movement may proceed to the second support level 1.5000.

The downward movement is maintained as long as the price is below the Kijun-Sen if the price consolidates above this line, then a sell signal will be weakened and the further downward movement will be called.

Chinkou Span is below the price that is a confirmation of the current sell signal.

Bollinger Bands show a continuation of the downward movement, the bands are directed down.
MACD is in a negative area.

Indicators support the downward movement.

Trading Recommendations

The pound fell after the interest rate and comments on them were published. One reason for the rapid falling was the low liquidity in the market, the negative attitude of traders and worsening economy. All this may lead to a further falling to 1.50 and then to 1.48.

We expect a short-term upward movement in the range of 1.5304-1.5350. The breakdown of 1.5350 should be accompanied by an upward trend, in this case, the target goal will be the level 1.5409, in the area of 1.5409-1.5440 price consolidation.