16, December 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The lack of the important news left the currency under the influence of external data which could impact the position of the pound. The retail sales report in the U.S. showed a strong improvement in consumer spending, provoked growth of sales and caused its decrease vs. the dollar.

The pair is falling. Kijun-Sen is horizontal and Tenkan-Sen is directed downwards. Chinkou is below the chart, the price is below the Ichimoku cloud at its bottom border. The downward movement will be as long as the Kijun-sen is below the price.

Bollinger shows a change of a trend, the bands are turning down.
MACD is in the negative area, the signal line is in a histogram.

Trading recommendations

The pair continues to trade downwards. Today we are considering the possibility of 1.6280 testing. Then we expect the price recovering development back to 1.6400.

As an alternative, we do not exclude an upward movement development after passing 1.6400.