11, November 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The Bank of England remained true to itself - the interest rate was left unchanged at the previous level of 0.50 % annual. The asset purchase program is maintained at around 375 billion pounds, although it has exhausted its capacity a year ago.

The data from the U.S. market was a little worse than everyone expected having a positive impact on the "cable". We can expect a growth of GBP/USD, the closest resistance lies at around 1.6165.

Tenkan and Kijun lines formed a «dead cross», Kijun-Sen is directed downside, and other lines are horizontal. Ichimoku cloud is going down, Chinkou is below the chart, the price is inside the Ichimoku cloud. We expect a short-term resistance from Kijun-Sen with a further decrease of the price.

The downward movement will be continued as long as the Kijun-sen is above the price.

Bollinger Bands confirms the present southern movement, its bands stops narrowing and are directed aside.
The MACD histogram is in a positive area, its volumes are decreasing.

Trading recommendations

We expect consolidation at the level 1.6000. If the price does not get any support after the fundamental data released we expect a rebound down. Marks 1.6000, 1.5985, 1.5955 are the potential targets to fall to.