14, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Against the background of the strengthening U.S. dollar the pair GBP/USD showed a sudden lowering at the end of last week. The dollar growth was triggered by strong economic news from the U.S. labor market and the Fed chairman, Ben Bernanke's positive speech.

The pair has reached the key support level 1.5310, after which it bounced and rebounded slightly.

At the moment, the falling continues, the pair consolidated at the level 1.5280. In the long term we expect the growth of the GBPUSD to the resistance level 1.5460. In the future, we can expect a significant growth to the levels 1.5480 and 1.5525.

Chinkou Span is below the price that confirms a bearish mood of traders. Tenkan-Sen line is below the Kijun-Sen. Tenkan-Sen and Kijun-Sen are directed downwards. The Cloud is going down.

Bollinger Bands show a downward movement, the bands widen and are going downwards.

MACD on the daily chart is in the positive zone, the histogram is below the signal line. It is directed downward and shows a good signal for an upward movement.

Trading recommendations

If the downward movement continues, the pair will move towards 1.5250. If this level is passed we recommend to trade to 1. 5190.

If the pair goes up, the price will go to 1.5535, having consolidated at this level, GBPUSD will go to 1.5570.