15, August 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

As the fundamental factors that may affect the pair we can consider a number of releases which will be published soon. Experts expect growth in the UK producer price index, which is generally positive for the pound. Growth of the index of housing prices may also be a support for the British currency.

GBP/USD is lower than 1.55, little changed from yesterday, although slightly in the red, and despite the leap to 1.5510 after the release of the consumer price index in the UK. Despite the slightly bearish tone, the pair enjoyed a rather neutral position.

Ichimoku Analysis

The pair is working out a "golden cross. The current buy signal is strong and confirmed, as Chinkou span entrenched above the price, and the price is above the Ichimoku cloud.

If the growth continues, the pair will continue growth to 1.56. The cloud is directed upwards. Tenkan-sen is slightly increased and the Kijun-sen is horizontal.

Bollinger Bands indicator shows an upward movement, the bands are directed up narrowing.
MACD is about to leave the positive area approaching the zero level.

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.