07, March 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Today the Bank of England is to make decision about the interest rates. Economists are also waiting for a decision on trade policy of the Bank. The votes are divided in February and the head of the England Bank supported the mitigation measures. All this can bring some pressure on the pound.

This pressure was felt yesterday when the couple renewed its downward movement. The pound was falling the whole day, broke through the planned target 1.5051 and entrenched under it. The trend remains bearish.

The pair is below the Kijun-Sen. The Chinkou Span is below price, the Ichimoku cloud is directed down.

The sell signal is strong. The target of the downward movement is 1.4941. After fixing at it the pair shall go to 1.4800.

Bollinger Bands shows a side movement in a downward canal.
MACD also confirms the downward movement.

Trading recommendations

The market is bearish. The first goal of the southern movement is the level 1.4941. If the price is fixed at this level it will go to 1.4800.

Stop loss can be placed above 1.5100. Take Profit target can be placed just above the target levels.

An alternative scenario: if the price rebounds from the Bollinger bands, the price will go to 1.5051 towards the cloud to the center line of an indicator.