13, September 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The level of the British unemployment rate unexpectedly fell, triggering the pound in the morning at the London session. The pair crossed the barrier at the level 1.5800 for the first time in 8 months. The fall in the unemployment rate is likely to put pressure on the Bank of England.

The pair has broken above 1.5750 on the background of strong employment report in the UK.

The candlestick of chart H4 indicate that the candle with the long axis is directed upward of the price range 1.5719 — 1.5825. There is a good support at level 1.5750.

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

We recommend to put long positions with profit-taking at the level 1.5880. Pending buy orders can be set at the level 1.5650 with profit-taking at the level 1.5880.