14, March 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Weak data did not allow the UK pound to gather strength to grow.

The pound is being traded at its lowest level against the dollar since June 2010. Economic conditions are not in favor of Great Britain. Weak industrial production data heightened concerns that the economy could fall into another recession, the third in five years.

The market is still bearish. The pair is below the Kijun-Sen (1.4940). The Chinkou Span is above the price, the Ichimoku cloud is directed down.

The Bollinger lines are horizontal. Price range is narrowed. The indicator shows a side movement..

MACD is in the negative zone and heading up.

Trading recommendations

The market is bearish. The first goal of the southern movement is the level 1.4800. The next target is 1.4687.

An alternative scenario: It is possible a breakout of the level 1.4980 and move up towards the Ichimoku cloud.

When we get profit in 50-60 points the stop-loss can be placed in a breakeven.