09, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Yesterday’s GBP/USD reversal showed a probable top which the pairacquired, tested and consolidated at the level 1.56 for the past four trading days. The upward movement continues. Bollinger Bands suggest a possible completion of the upward movement.

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

GBP/USD can again try to break the resistance level 1.56, but taking into account the decrease in industrial production, the loss of the British pound positions may be more significant.

We should expect the consolidation from 1.5575 to 1.5404 before the pair tries to go up to another level, so as the top performance indicator Bollinger Bands are willing to overcome the 1.5575 level.