14, August 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

British house prices are rising at the fastest pace in seven years. This may raise concerns that government incentives create a new credit bubble of property.

Ichimoku Analysis

The pair is working out a "golden cross", but continues to move downward correction to 1.5426. The current buy signal is strong and confirmed, as Chinkou span entrenched above the price, and the price is above the Ichimoku cloud.

The sell signal is weak, if the growth continues, the sell signal will be canceled. The cloud is directed upwards. Tenkan-sen is slightly increased and the Kijun-sen is growing.

Bollinger Bands indicator shows an upward movement, the bands are directed up narrowing.
MACD left a negative area and is growing up now.

Trading Recommendations

It is very likely that the current falling will be continued till the level 1.5400, which is to act as a strong support level. If the approach to the level is not accompanied by an increase in volumes there will be a rebound with a further continuation of the growth.

The alternative variant

The approach to the support level 1.5400 may be accompanied by the formation of price consolidation with further slight rebound upwards. In case of break down the 1.5400 level and intermediate rising trend line 1.5370, we expect reduce of the prices to the nearest 1.5320 support.