05, August 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The Bank of England decided to leave the refinancing rate unchanged and asset purchases. The Bank of England's inflation report which will be published on August 7, will be the next major event for the British pound.

After the release of PMI and the decision of the Bank of England the sterling was able to recover to 1.5300 from lows below 1.5142. But it was not enough to bulls stood at the helm. Solidarity with the euro let the pound give away from the conquered levels.

The price entered the cloud on the four hour chart. The sell signal is weak, if the growth continues, the sell signal will be canceled. Kijun-Sen and Tenkan-sen still form a "dead cross", the price is above the signal line. Cloud is targeted downwards. Tenkan-sen is increased slightly, and the Kijun-sen is reduced.

Bollinger Bands indicator shows a downward movement, the bands are directed down.
MACD left a negative area and is growing up now.

Trading Recommendations

We continue watching the downtrend structure of July, 26. Continuation of the downtrend is expected after breaking 1.5108, and the target in this case is 1.5056, within the range there will be a consolidation of the price.

Short-term uptrend is possible within the corridor 1.5237 – 1.5300 and the breaking of the latter figure will lead to the deepened movement, the target here is 1.5440.