15, July 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

According to the expectations of the bank, the U.S. GDP growth will be accelerated in the second half of the year. The minimizing program of asset purchases the Fed will be held the end of 2013 in line with market expectations. At the same time, the new head of the Bank of England Governor Mark Carney is expected to begin in August with a substantial easing of monetary policy.

The pair continues to work out the "dead cross" on a daily time-frame. Still there is a correction on a 4-hour time-frame. The current sell signal is weak and confirmed, as Chinkou Span is below the price, and the price is in the Ichimoku cloud.

At this point the pair is consolidating in a price range: 1.5070-1.5170. The downward movement is targeted to the support level 1.4890. After passing this target the downward movement may go to the second support level 1.4866.

The downward movement is maintained as long as the price is below the Kijun-Sen if the price consolidates above this line, then a sell signal will be weakened and the further downward movement will be called. The Kijun-Sen and Tenkan-Sen are directed downwards. Both lines are horizontal. The Chinkou Span is below the price that is a confirmation of the current sell signal.

Bollinger Bands show an upward movement, the bands are directed up.
MACD is in a positive area.

Trading Recommendations

In this situation, long positions at the level 1.5300 are more profitable. The pending orders for the purchase of the level 1.5000 are possible with profit-taking at the level of 1.5300.