09, September 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

GBP/USD began growing last Thursday and ended the week below the Wednesday range– pointing to a possible bear turn. However it will be difficult to make it as the pound has gained strength recently. Therefore today, traders will get much data to think over including the British consumer inflationary expectations, the British industrial production, given on the British trade balance.

The price broke the Cloud and consolidated above it. The Kijun -Sen and Tenkan -Sen are crossed in a "golden cross" on a daily chart. Both trend lines move horizontally parallel to each other. The 4 hour time frame is much the same. The price is above the Cloud being traded above its upper boundary. The cloud is growing.

Bollinger Bands shows an upward movement.
The MACD histogram left the negative zone.

Trading Recommendations

The pair came to the support line of the ascending channel. It is most likely to bounce up and will continue an ascending structure. But first it is necessary to break through and be fixed above 1.5615. Its break up will open the way to level of resistance 1.5655, 1.5700.