10, September 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

GBP/USD rose before closing for the weekend, to 1.5630 after a turbulent day as a result of falling U.S. dollar on weaker than it was expected the data of the U.S. Non Farm Payrolls.

GBPUSD continues to be traded within the ascending channel. Securing the price above resistance level 1.5615 gives additional grounds for assuming on the possible continuation of growth rates.

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 potential target of the growth will be the resistance line, forming the upper base of the channel, as well as the support level at 1.5700. Crosshair of the formed resistance would provide a good barrier from which there will be a back bounce down. Falling prices will either come to the support level 1.5615 or to 1.5630 support line.