12, September 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

After the Bank of England announced a landmark, the unemployment rate and the UK labor market have become a rock star in the world of economic data. The labor market figures were published yesterday and it will probably be the most important event for sterling this week, and it has the potential to cause volatility in the bond markets.

Pound followed the yield up, and rose above 1.5700. Key short-term resistance is at 1.5760, should the price pass this level the way to 1.5785 and then to 1.60 will be opened.

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 are growing 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 and is growing.

Trading Recommendations

If today, the GBPUSD continues its upward growth, moving away from 1.5720, the bullish trend will get more strength. The resistance level 1.5800 will be the closest potential target. In case of further growth retest of 1.5850 — 1.5870 is expected.