13, June 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

We see that the pair completed the bearish corrective movement and still it has not worked out any pivot level or Kijun-sen, although it was very close.

The current buy signal is strong and confirmed as Chinkou-span is above the price and the price is above the Ichimoku cloud. The upward movement is targeted to 1.5745. Should the price pass it the upward movement may continue to 1.5870. The upward movement is maintained as long as the price is above the Kijun-Sen if the price consolidates below the line, then a buy signal will weaken

Chinkou Span is above the price which confirms the current buy signal and indicates a bullish mood of traders. Tenkan-Sen is below the Kijun-Sen. Tenkan-Sen and Kijun-Sen are directed upwards. The Cloud is directed down.

Bollinger Bands show a continuation of the upward movement.
MACD is growing.

Bollinger Bands are broadening.
MACD is in a positive zone now and keeps growing.

Trading recommendations

The forecast remains unchanged, taking into account that the pair has spent several days in the price range. We believe that the resistance level 1.5700 will not let the pair to go further. Still an upward movement to the level 1.5800 is possible.