18, July 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

At a meeting of the Bank of England, where Mark Carney made his first appearance as a manager, he sought to convince investors that he prefers soft politics, he was the first given the so-called indicators of monetary policy, and tried to lower expectations with respect to any possible tightening and remain unchanged UK government bond yields low.

The pair continues to work out the "dead cross" on a daily time-frame. Still there is a correction on a 4-hour time-frame. The current sell signal is weak and confirmed, as Chinkou Span is below the price, and the price is in the Ichimoku cloud.

At this point the pair is consolidating in a price range: 1.5070-1.5170. Still we can see the correction is in a process. The upward movement is targeted to the resistance level 1.5170. After passing this target the price may go to the level 1.5300.

The downward movement is maintained as long as the price is below the Kijun-Sen if the price consolidates above this line, then a sell signal will be weakened and the further downward movement will be called. The Kijun-Sen and Tenkan-Sen are directed upwards. Both lines are horizontal.

Bollinger Bands indicator shows an upward movement, the bands are directed up.
MACD is in a positive area.

Trading Recommendations

Expectations have not changed, and in the short term, there will be a high probability of further growth to the resistance in the 1.5300.

Meanwhile, a break above 1.5300 resistance can be very difficult, so that the expected reversal of the trend down on the approach to this mark and renewal of the downtrend in order to overcome the 1.4810-1.4830 support.

In case of fall below minor support it is not excluded a retest of 1.4810-1.4830 support, overcoming of which can confirm the development of medium-term downtrend with the next target at 1.4230 support area.