17, December 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

There were no important economic publications as the pound sharply fell vs. the dollar, falling by 0.47% to 1.6267. By the end of U.S. session the pound recovered some of its losses.
The volumes show a divergence, indicating that a strong support level near 1.6235 will temporary stop the price.

The pair keeps 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 consolidation at 1.6235 will be a signal that a corrective pullback is over and bullish trend will be continued. The short-term target of growth is 1.6340.