14, October 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The Bank of England kept its key interest rate at a record low 0.50 percent on Thursday, as expected.
The Bank decided to maintain a cash infusion which the Central Bank pumps up in the British economy in the amount of 375 billion.

We can buy higher 1.5916 with the target 1.6002 and 1.6042. If the price falls below the 1.5916, 1.5872 we can start selling. If this level is broken, the pair may reach 1.5814 and 1.5781.

The current sell signal is strong and confirmed as Chinkou span is below the price chart and the price is below Ishimoku cloud.

The downward movement remains until the price is below the Kijun-sen (1.6015).

Bollinger bands show a continuation of the downward movement, the bands are widening and down-directed.
The MACD is in a positive area confirming the current upward movement of prices.

Trading recommendations

If the price consolidates below the uptrend and the resistance level 1.5950, the market will continue its downward trend.

The potential targets will be the levels 1.5890 and 1.5825 and 1.5780.