11, February 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Analyzing GBP/USD on February, 11 we can see that the pair continued an upward correction and worked out the critical line of Kidjun-sen and broke through the Ichimoku cloud.

The current buy signal is confirmed and strong as the Chinkou Span is below the price chart, and the price is above the Ichimoku cloud. For this moment the goal of the upward movement is the first level of support 1,5813. The price needs to work it out and consolidate above it.

If the price consolidates over the target, an upward movement can be resumed to the second resistance level 1,5879. The upward movement will be actual as long as the price is above the Kidjun-sen (1,5743).

Bollinger Bands are extending are in a side movement. It is better to stay out of the market right now.

MACD is turned up that indicates a correctional movement. Should the indicator turn down that may become a signal for a renewal of a downward trend. If the price fixes below the Kidjun-sen, it also can become a signal for renewal of the downward movement.

Trading recommendations

We advise not to open orders right now until we know for sure where the price will go. If the correction continues the price shall go to 1.5879. If the price continues to stay above Ichimoku cloud that can cancel a downward movement.
If the price returns below the Ichimoku cloud that could become a renewal of a downward trend with the levels 1.5733 and 1,5667 as a target.

No matter want order we open (a long or a short one) when we get profit of 50 - 60 points, stop-loss can be moved to a breakeven. Our recommendation is to place Take Profit slightly above the target levels.