18, June 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British pound was being traded like the euro last week and ended it higher against the U.S. Dollar and Euro. Deputy Governor of the Bank of England Paul Tucker said he would leave the central bank, freeing up the space for Mark Carney on the Committee on Monetary Policy, whose views are close to his.

This week will be hard for the United Kingdom, on Tuesday the central bank will publish production and consumer prices, monetary policy committee will release its minutes of the last meeting on Wednesday and retail sales and factory orders will be announced on Thursday.

Tenkan and Kijun are under the influence of the "golden cross", Tenkan and Sinkou A are directed down.

Ichimoku Cloud is growing. A short-term support can be expected at Kijun-Sen.

Bollinger Bands show a continuation of the upward movement. Its bands are narrowing.
MACD is going down.

Trading recommendations

The British pound was being traded like the euro/dollar. The price was able to break through some of the key resistance levels, especially 1.5600 and now we believe that its target is 1.58.

The pair needs a break and will use 1.5600 as the support to stay.