07, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

GBP/USD started the week with an upward movement to the resistance level 1.5600-1.5500. The pair in this price range since the beginning of May. The last week was successful for the British currency, showing signs of a growth and economy recovery as the business activity index in the three sectors was better than it was expected.

If this week the data on industrial production for March will be positive, the pair can return to a sustainable growth.

The upward movement is slowing still the pair can continue it. Bollinger Bands also suggest a possible completion of the upward movement.

The current buy signal is strong and confirmed, as the Chinkou Span is above the price, and the price is above the Ichimoku cloud.

The price is directed to the first resistance level 1.5570. Should the price overcomes this target the upward movement may continue to the second resistance level 1.5660.

Chinkou Span is above the price that confirms the current buy signal and indicates a bullish mood of traders.

Bollinger Bands show a continuation of the upward movement, the bands are narrowing and directed upward.

MACD is turned up, indicating the current uptrend.

Trading recommendations

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

1.5600 level seems to be the key level for the pair. If the price overcomes this level we can talk about the continuous of a northern movement.

It is possible that in the short term, the pair will be traded sideways about 1.5600.