16, October 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Pound was stronger against the U.S. dollar on Monday, as growing fears of a possible U.S. debt default continued to pressure the dollar.

Negotiations between the White House and Republicans did not take place over the weekend, after the President Barack Obama rejected a Republican proposal for a short-term increase in the debt ceiling.

GBP/USD peaked at 1.6017, but then it decreased by 1.60 during trading in the U.S. The pair subsequently found support at 1.5950, which is the beginning of growth in the Asian session. The pair is likely to find a support at 1.5922, Friday's low, and resistance at 1.6070, the high of September 23.

Bollinger bands show a continuation of the downward movement, the bands are widening and directed down.
The MACD is in a negative area.

Trading recommendations

We recommend to open long positions at the current price with take- profit at around 1.6032 and stop loss at 1.5967 .