06, December 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound traded downwards amid to low UK Services PMI, which fell from 16-year high level more than we expected. The index fell in November to 60 from 62.5 of October - while the decrease of only 62 p. was expected.

Technically, the situation has not changed; the pair is trading above 1.6300, which now acting as a support, the risk is still bullish. We believe the pair to continue the growth in order to test the key resistance 1.6750.

Tenkan-Sen and Kijun- Sen have formed a «dead cross», Kijun-Sen is horizontal, Tenkan-Sen is directed downwards. Ichimoku cloud is changing 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

Most likely, today the price will try to break below 1.6300 again. And if the breakthrough does not happen we may expect a bounce up to the resistance 1.6430.