17, April 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

As we expected, yesterday the pair moved in a channel 1.5300 - 1.5350, but at noon GBP/USD reacted to the negative data of Chinese statistics and began to fall to a local minimum 1.5270.

Later, the British currency made attempts to recover, but unsuccsesfully, it could only grow to the level 1.5320. The upward movement was due to the favorable economic UK statistics: inflation remained unchanged in March, but the level is still above the target of the England Bank.

At the moment the pair is consolidating at 1.53.

The pair keepd growing, The buy signal is strong though weak.

Tenkan-Sen line is below the Kijun-Sen. The Tenkan-Sen and Kijun-Sen are going downwards. The Cloud is growing.

"Bollinger Bands" is growing, confirming growth.
MACD is growing as well, confirming a growth.

Trading recommendations

It is likely that the pound will grow against the dollar. High demand for the pound may continue and rumors bout program expansion of monetary stimulus will not deter investors. Inflation remains above the target level, it means that the Bank of England will not introduce additional easing measures in the near future. It is likely that the pair will continue to rise, the expected level is 1.5350. Perhaps the pair will return to the key resistance level 1.5410.

We advise to place buy orders at the level 1.5410. It is also recommended to place pending orders to buy near the support level 1.5260 (1.5215).