18, September 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The positive economic data in the UK has led to expectations that the central bank should raise interest rates sooner than it had previously stated.

GBP/USD failed to hold above 1.5960, having gone to 1.59, giving bearish pressure on the close of Wall Street. The UK's FTSE 100 closed at +0.59%.

The pair moved into the upper trading range between supports at 1.5878, 1.5843, 1.5810 and resistance at 1.5961, 1.60. There is a slight drop below EMA20 and lower limit of the upward channel at one hour timeframe.

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 pair continues to strengthen its positions in the medium term and no one will be surprised if the pair tests new local highs 1.6000, 1.6050. We should not forget about the corrective movement down to the level 1.5900. The pair continues to be traded in the ascending corridor, all technical and fundamental indicators point to a growth.