06, August 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The Bank of England has not changed its policy. We expect quarterly report on inflation, and Carney after he took office in July, will give his first press conference this week.

During the week we expect some important data for sterling estimate of GDP, as well as the Bank of England's quarterly report on inflation scheduled on Wednesday and Thursday, so this week can be stressful as well.

Now Ichimoku Analysis

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 directed downwards. Tenkan-sen is slightly increased 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

Daily and weekly charts are in a flat, despite the fact that the cable has been quite volatile in the near term we do not wait for price going one direction only, but the positive momentum in the four-hour chart may rise a little higher.

After the break of 1.5312 the price might go to 1.5352 level for the potential to reach the level 1.5387 and maybe 1.5435. Supports are located primarily at the level 1.5252, 1.5202 and then at 1.5172. The overall picture is quite neutral.