15, April 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound continues to strengthen its positions. On Friday, the pound tested an important resistance level 1.54.

At the end of the trading Friday the pair fell to 1.5350 against the dollar. The pound grows due to the fact that investors are taking money from the low-yielding yen to more profitable pound.

The Tenkan-Sen line is above the Kijun-Sen. Tenkan-Sen line goes upwards, Kijun-Sen is horizontal. The Cloud keeps growing.

"Bollinger Bands" lines are going up confirming a growth.

MACD is above the zero line. The indicator is going down but continues giving a buy signal. Should MACD turn down that may signal the end of the uptrend.

Trading recommendations

The pound will continue to grow against the dollar. The pair returned to the level 1.5350, from which will regrow later. Expected levels are 1.5450 (1.5510). The demand for the British currency is very high due to the weak yen and the unstable situation in the Eurozone.

We recommend to open long positions with take-profit at the level 1.5510.