17, October 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

In September, the consumer price index in Britain was 2.7%, and this figure does not live up to the expectations associated with a slight decrease by 2.6%. It is obvious that the higher inflation will lead to an increase in the growing list of indicators showing that there is no reason to take any new measures to stimulate the economy by the Bank of England.

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

If the pair is not able to re-break above the 1.6002 level, the bulls expect the continuation of the bear market. However, if the price breaks and consolidates below 1.5927 that will open the way to 1.5892, 1.5832.