16, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound desperately continues clinging to support at 1.5220/1.5180, but, nevertheless, the mood of traders remains negative and the bulls have all reasons to be worried.

As the pound is not able to break above the 1.56 level and further break below 1.5360/50 held up under the recovery from the lowesе points of March, so a bear flag formed by the price does not promise anything good.

Chinkou Span is below the price that is bearish signal. Tenkan-Sen is below the Kijun-Sen. Tenkan-Sen and Kijun-Sen are directed downward. The Cloud has a downward formation.

Bollinger Bands show a downward movement, the bands widen and downwards.

Histogram MACD is in the positive area below the signal line on the daily chart. The histogram is directed down and shows a good signal for correction.

Trading recommendations

If the pair remains above 1.5250 the bulls can hope that the consolidation will be drawn out, however, confident jerk below 1.52 will confirm that there is a risk of downward movement and the pair can go to 1.50.

In general, there are reasons to believe that the goals remain relevant as this year low points around the levels 1.46/1.44. These reasons relate to the picture on the longer-term charts, negative for the pound fundamental factors, as well as the continuing demand for dollar-denominated assets.