12, March 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British is doing everything possible to keep the national currency up. The new head of the Central Bank Mr.Carney will be given more power to soft the UK monetary policy. Despite all these Central Bank measures analysts are pessimistic not expecting a "miracle" in the nearest future. It is possible a high volatility as the pair is being traded at the critical levels.

The pair is working out a "dead cross", all indicators show bearish trend. MACD may turn upwards soon.

The sell signal is confirmed. The pair continued a downward movement yesterday, having stopped at the bottom line of the Bollinger. Today we expect the further downward movement.

The market is bearish. The pair is below the Kijun-Sen (1.5000). The Chinkou Span is below price, the Ichimoku cloud is directed down.

Bollinger Bands pointing down, the channel is narrowing.

MACD histogram is ready to turn up.

Trading recommendations

The market is bearish. The first goal of the southern movement is the level 1.4800. We expect a short stay at this level before the pound goes down. The next target is 1.4687.

Stop loss can be placed above 1.5100. Take Profit can be placed just above the target levels.