06, September 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

GBP succeeded to resist against US dollar on better than it was expected PMI of construction and similar positive data of PMI in a services sector, it can continue to support sterling even today. In the short term, the cable can remain within the range1.5500 – 1.5640.

The bank of England, as expected, will keep a political position unchanged.

After the growth from 1.55 within two days, the pair reached a recorded maximum on 1.5649. The pair remains in the ascending channel on hourly time-frame and gets support on EMA20.

The price 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 shows an upward movement.
The MACD histogram left the negative zone.

Trading Recommendations

While the price has accurately set ascending structure its main direction remains bullish. The approach to the support 1.5570 forming the bottom basis of the channel can cause a good rebound up to the level 1.5615. The break 1.5615 up will open the way to 1.5700. The further growth will allow to get to such levels as 1.5750 and 1.5800.