07, June 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British currency is going to grow in the next few weeks, but in the long term it is likely to fall. This forecast is suggested by the improved macroeconomic data which is observed in the recent time.

The signs of recovery which are seen in the UK economy reduce the likelihood of applying by the Central Bank measures aimed at stimulating the economy which would negatively affect the course of the pound.

However, the new governor, who will proceed to his duties in July may take another course and choose to use that policy that can pressure the pound.

Ichimoku Analysis

Chinkou Span is below the price chart. Tenkan-Sen is below the Kijun-Sen. Tenkan-Sen is directed upwards, Kijun-Sen is horizontal. The Cloud is directed down.

Bollinger Bands are broadening.
MACD is in a positive zone now and keeps growing.

Trading recommendations

We believe that the British pound will continue to grow when the market will see no change in the policy of the Central Bank of England. Today the rate GBP/USD can continue its upward movement and reach targets at 1.5860-1.600.