10, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Bank of England decided to maintain the current policy.
It seems that the British Pound again gets help before the Bank of England to decide on interest rates and the pound may be higher than the 1.55 the next week.

In addition, there is speculation that the Bank of England will not release a policy statement and will retain a neutral position, which is held by the Committee on monetary policy. Such move will affect the maintenance of sterling as the Central Bank gradually moves away from its policy easing in the coming months as the UK was able to avoid a triple recession.

Yesterday the pound was able to develop a downward motion and entered the Cloud.

Chinkou Span is below the price, which means that forex traders have a bearish sentiment.

Bollinger Bands show a downward movement, the bands are not expanded and directed down.

MACD is at the zero level.

Trading recommendations

If the downward movement continues, the pair will move towards 1.5460. If the pair passes this level we recommend to open orders with the target 1.5400, the lower boundary of the Ichimoku cloud.

Should the pair go up, it will go to 1.5535, having fixed at this level, GBPUSD will grow to 1.5570.