12, December 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound continues to strengthen versus the U.S. dollar after the Bank of England chairman - Mark Carney claimed that the UK economy still had a potential for further sustainable growth. The pair has reached a two-year high at 1.6465, but further upward movement can be difficult. British currency will need a strong macroeconomic impulse to jump above this major resistance level.

The pair is growing. Kijun-Sen is horizontal and Tenkan-Sen is directed downwards. Chinkou is below the chart, the price is above the Ichimoku cloud at its upper border. The upward movement will be continued as long as the Kijun-sen is below the price.

Bollinger shows an upward movement, the bands are slightly expanded and growing.
MACD is in the positive area, the histogram is above its signal line, but moves almost parallel to the histogram not giving certain signals.

Trading recommendations

We recommend short positions within a corrective movement from the resistance level 1.6465 with a take-profit 1.6365.