15, March 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Yesterday the pair was in a correction to the U.S. currency. The reason for the correction - Marvin King's unplanned speech, the head of the Central Bank of England. He said that the Bank had developped a mechanism to stimulate the economy, hinting that the economic downturn is over and the economy soon will begin the recovery.

On this news pound rose to the level 1.5065, where it stopped. The Current level is  the upper limit of the Ichimoku cloud. If the pair continues the upward movement today, it will cancel the sell signal and lead to a change in the trend.

The market is bearish though the pair is in a correction. The pound popped up to the level 1.6065 and successfully penetrated it. The pair is above the Kijun-Sen (1.4975) and the Chinkou Span. The Ichimoku cloud looks down trended.

Bollinger Bands began to broadening.
MACD is going up.

Trading recommendations

The market is bearish. The first goal of the southern movement is the level 1.4940. If the price is fixed at this level it will go to 1.4800. The price will return to the southern movement as soon as it returns below the Kijun-Sen.

Stop loss can be placed above 1.5100. Take Profit target can be placed just above the target levels.

An alternative scenario if the correction continues. The pound can keep on growing to the level 1.5180.

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