05, December 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound was traded upwards versus the dollar. This time the market reacted to the strong economic data with confident buying of the pound. As for the future perspective, the pound probably continues the trading in a range versus the dollar as while waiting UK BO decisions investors are likely to risk.

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.

Though Bollinger bands are directed upwards they are changing a direction, turning down.
MACD histogram is in positive zone, its volume decreases.

Trading recommendations

A reversal pattern “double top” is formed at the 4-hour chart. The only thing that constrains pound from falling is a slanted support line 1.6380.

Should the price break the line 1.6380 we shall expect its falling to 1.6315.