16, April 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

On Friday, the pair began a downward movement, rebounding from the key resistance level 1.5410. The fall has slowed due to a weak economic data from the U.S.: Retail sales fell 0.4%.

Later, the pair dropped to the level 1.5335 and ended the week at this level. This week began with the growth of the pound against the dollar. The pair rose to the level 1.5385, but it was unable to overcome it and went down at the opening of an Asian session, reaching 1.5310.

The falling continues. The buy signal is still strong although weakened.

The Tenkan-Sen line is above the Kijun-Sen. Tenkan-Sen and Kijun-Sen are directed downwards. The Cloud stopped growing.

"Bollinger Bands" are broadening, suggesting a growth. Should the indicator turn down that will become a signal for a southern movement.

MACD is above a zero line, but the indicator is going down. When MACD gets into a negative zone it will give a sell signal.

Trading recommendations

We can open long orders from 1.5300 with profit-taking at the level of 1.5410.

Further falling will weaken the buy signal. The price will move in the direction of the Ichimoku Cloud, to the level 1.5250. If the price consolidates under the cloud, it will cancel the buy signal. The second target of the southern movement becomes 1.5180.