18, October 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The number of unemployed is reduced in the UK, still wages also remain pretty low. All in all the report on UK labor market was solid - Initial Jobless Claims fell more than expected, 41.7k down, compared to the expected decline in 25k, and the unemployment rate remained unchanged at 7.7%.

GBP/USD rose but it fell soon back. After hitting the resistance at 1.6060, it went above 1.60. The pivot is at 1.5967.

The MACD histogram is growing. The market is uncertain. The best solution is to wait until the situation is stabilized and the pair forms a strong and proven signal and the Ichimoku and Bollinger bands confirm that signal.

Trading recommendations

The lateral movement will be changed to an upward or a downward one if the price breaks one of the levels up or down.

The break of the support 1.5930 will open the way down to 1.5890, 1.5830.

The growth above 1.60 will direct the pair to 1.6270.