05, September 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

It is expected that the GBP will remain in a narrow range when thete will be published the key interest rate of the Bank of England. However, the index of business activity in the UK services sector published 2 hours before the euro area GDP may support the pound.

The pound approached the 1.5600 psychological barrier. The failure to break above increased the risk of dropping the price to 1.5530 where it found a temporary support. 4 -hour indicators point upwards. The price needs the break of 1.5600 and 1.5636/41 to confirm its growing towards 1.5700/16.

The price jumped broke the Cloud and consolidated above it. 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. The cloud is growing.

Bollinger Bands indicator shows an upward movement.
The MACD histogram left the negative zone.

Trading Recommendations

If the price does not manage to break above the level 1.5570 the rebound will occur down the rising trend line to 1.5500. A trend line break shall open the way to 1.5425 and 1.5400.