07, August 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The services sector could reach six-year high in UK, pointing to the fact that it was able to recover from the global financial downturn.

Throughout it is clear that the UK's economic recoveries and it is actually moving to a more solid foundation. All this happened after the index HSBC unproductive purchasing managers in China for July came out at 51.3, which is unchanged from June. This has become a cause for the concern regarding the fact that in the coming months, China's economic growth may slow down.

Now Ichimoku Analysis

Price entered the cloud on the four hour chart. The sell signal is weak, if the growth continues, the sell signal will be canceled. Kijun-Sen and Tenkan-sen still form a "dead cross", the price is above the signal line. Cloud is directed downwards. Tenkan-sen is slightly increased and the Kijun-sen is reduced.

Bollinger Bands indicator shows a downward movement, the bands are directed down.
MACD left a negative area and is growing up now.

Trading Recommendations

Monday's high 1.5378 was under pressure, and it is expected to increase further to a maximum of July 25 1.5432. A powerful recovery from Friday's low at 1.5104 has found another good support on Monday, and a maximum of 1.5432 acquired a great importance, as the broader bullish wave with a reaction low at 1.4813 on July 9 will be continued on a break above 1.5432. The support at 1.5285 and 1.5240 limit a downside risk, protecting the levels 1.5144 and 1.5104.