08, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Traders await the outcome of the Bank of England Monetary Policy Committee meeting. To stimulate economic growth British regulator may decide to amend the monetary and credit policy. There is a possibility of expanding the program of quantitative easing.

The upward movement continues. Bollinger Bands also suggest a possible completion of the upward movement.

Tuesday afternoon the pair fell to the level 1.5460 - this is the upper limit of the Ichimoku cloud. If the pair enters the cloud and stays, it will weaken the buy signal. The further falling of the pair can completely cancel the signal.

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 broadening and directed upward.

MACD is turned down, indicating the downtrend.

Trading recommendations

At the moment, it is not recommended to enter the market. We can trade if the pair bounces off the top of the cloud, or if it breaks the cloud down.