06, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Optimistic data from the UK have pushed the pair to 1.56 in the middle of the last week, but the "bears" could not overcome it. After the ECB's interest rate were lowered, the pair dropped to 1.5500. Investors believe that the news on the U.S. labor market, will contribute to a weakening of the growth rate of the pair.

The price can still go up to the level 1.5660, if it consolidates at the nearest resistance - 1.5570. If the price does not succeed, it can bounce back towards 1.5460.

The Tenkan-Sen is above the Kijun-Sen. The Tenkan-Sen and the Kijun-Sen are directed sideways. The Cloud is directed upward.

"Bollinger Bands" are narrowing and directed upward, we recommend going long.
MACD is growing, the histogram is in a positive zone.

Trading recommendations

The pair continues to move in an upward channel with a minor downward correction.

The target of the northern movement is 1.5660. The price will go to it having consolidated at 1.5570.

Also, it is also possible that the pound will decline slightly against the dollar to the initial support level 1.5460 (1.5410), and then resume the upward movement.