10, April 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pair continues to trade above the cloud. The buy signal is strong as Chinkou span consolidated above the price and the price is trading above the Cloud. The Tenkan-Sen line is above the Kijun-Sen. Tenkan-Sen is going up, the Kijun-Sen is horizontal. The Cloud is growing.

Favorable data on industrial production slightly strengthened the pair on Tuesday. The pair is consolidating over the cloud. The support level 1.5250 is still a crucial. Should the price break through it the pair can enter the cloud, which will weaken the buy signal.

Bollinger Bands are narrowing. We expect the correction.

MACD is above the zero line. The signal line left the histogram. We expect the correction.

Trading recommendations

We believe that the pair will fall back to the level 1.5150 in the nearest future. After a correction the pair should resume its growth and reach new maximums.

If the growth continues the pair will grow to the level 1.5460, but not before the pair is fixed at 1.5360.

In case of a turn back the pair will move to the level 1.5250. The next support level is 1.5180.