15, October 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

GBP/USD lost about one cent last week. The pair consolidated in 1.5946 area, which has been the first week closing of the pair below 1.60 since the beginning of September. The key events of this week are the CPI, change in unemployment and retail sales.

Pound enjoyed great demand in September, but the different story began in October as the currency lost ground falling the second week in a row. With the resolution of the question of the debt ceiling in the United States the way for the pair can be thorny this week. However, if Congress succeeds to reach an agreement, the dollar may be supported.

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

All unsuccessful attempts to stay above 1.6000 (false retests) will only strengthen the resistance level. We can expect the price rebound down from this level.

The immediate goal will be the support level 1.5950. Fixing below 1.5950 allow sellers to lower the price to 1.5900.