09, December 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The Pound fell after the announcement that the BO England left interest rates and the asset purchase program unchanged in December.

Statistics showed the maximum industrial production growth in the last 3 years, while the situation at the construction and nonproduction industries showed an improvement.

UK Treasury Secretary - George Osborne stated that the requirements for borrowers in the coming years will be reduced and predicted a revival of economic growth in his October appeal.

Tenkan-Sen and Kijun- Sen have formed a «dead cross», Kijun-Sen is horizontal, Tenkan-Sen is directed downwards. Ichimoku cloud is changing its direction, Chinkou is below the chart, the price is above the Ichimoku cloud. The upward movement will be continued as long as the Kijun-sen is below the price.

Though Bollinger bands are directed upwards they are changing a direction, turning down.
MACD histogram is in positive zone, its volume decreases.

Trading recommendations

As the major support levels are punched, the main target of a downward correction is the support level 1.6240 with a possible retest of 16200.