12, August 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound continues growing although dealers are still skeptical that it can maintain its current rate of growth without a pause. Analysts at Standard Bank, commenting on the dynamics of the pair say that this development seems to be quite realistic in the near future, given the disappointment of bears in the new head of the Bank of England. However, the bank did not feed the optimism about the long-term prospects for the British currency, predicting a drop to 1.50 by the end of September and to 1.46 by the end of the year.

Now Ichimoku Analysis

Price entered the cloud on the four hour chart. The sell signal is weak, if the growth continues, the sell signal will be canceled. Kijun-Sen and Tenkan-sen still form a "dead cross", the price is above the signal line. Cloud is directed downwards. Tenkan-sen is slightly increased and the Kijun-sen is reduced.

Bollinger Bands indicator shows a downward movement, the bands are directed down.
MACD left a negative area and is growing up now.

Trading Recommendations

After proving the model of “V-shaped bottom” the 4-hour chart of the pound-USD showed the development towards the local uptrend. The resistance to the movement was made by the area between the levels 1.5459 and 1.5606, after which the price came back down.

We expect the local downward correction of the price to the field of support between the levels 1.5479 and 1.5433, after which the further movement of the price towards the acting trend to the field of resistance between the level 1.5606 and the higher border of rising of the local uptrend channel.