13, December 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound traded down on Wednesday after it previously updated yearly high levels versus the dollar. The Bank of England member Martin said that benchmark, adopted in August, reduced uncertainty about the Bank intentions and probably postponed expectations of further interest rate growth. The growth of Inflation expectations is insignificant and cannot be the cause for the concern. The guidance stimulates the UK economy, but this effect is reduced - Will said.

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

The pair corrected a bit, but as long as it trades above immediate support level 1.6300, everything suggests the growth and testing the key resistance at 1.6750. The minor resistance is 1.6620.