17, September 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

GBP/USD continues to grow after a strong break of the key resistance level 1.5750 last week. The pair is expected to grow to the target level 1.6092 in the next 19 trading days. The cancellation of this forecast means the breakdown of support level at 1.5481. A break of 1.5750 key resistance led to the breakthrough of the 61.8% Fibonacci retracement - which should increase bullish pressure on the pair in the next session.

The price broke the Cloud and consolidated above it. The Kijun -Sen and Tenkan -Sen are crossed in a "golden cross" on a daily chart. Both trend lines are growing parallel to each other. The 4 hour time frame is much the same. The price is above the Cloud being traded above its upper boundary. The cloud is growing.

Bollinger Bands shows an upward movement.
The MACD histogram left the negative zone and is growing.

Trading Recommendations

The formation of a divergence in the volume suggests that the ascending market structure continues to weaken. Apparently, the turning point will be performed by the resistance line 1.5990 of the ascending channel. But the pair will have to climb up on one figure (about 100 points).