08, March 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Yesterday the Bank of England decided not to change the interest rate, leaving them on the same level - 0.5%. This news strengthened pound which started growing against the U.S. dollar.

The correction was short-lived, the pair rose to the level 1.5065, from which bounced back down 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.
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.