09, October 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The market is waiting for a decision on the monetary policy of the Bank of England, although it does not expect to see any changes in QE rates. GBP / USD rebounded on Monday, moving away from the big figure 1.60 to 1.6090 by the end of the session.

GBP/USD found a good support at 1.60 while the stalemate in Washington continues.
The monetary policy is not likely to change this week as Mark Carney said that it would remain the same for a long period of time.

The current buy signal is strong and confirmed, as Chinkou Span is above the price and the price broke the Ichimoku cloud. The Kijun -Sen and Tenkan -Sen are crossed in a "golden cross" on a daily chart. Both trend lines are growing parallel to each other. The cloud is growing.

Bollinger Bands show a continuation of the downward movement, the bands widen and are directed down. Short positions are recommended now. MACD is directed downward.

Trading Recommendations

The upward correction is directed to 1.6100, from which GBPUSD has strayed down and went back to the support level 1.6050.

Everything indicates the bearish trend, but for the true intentions of validation we must wait for a break of the support level 1.6050.