18, November 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound ignored the weak report

on retail sales, and it continued its growth. The UK retail sales fell in October by 0.7%, while the changes had not been expected.

The pair keeps its propensity for growth and sustainable consolidation above the 50-day SMA will be a signal of continuing the growth to test the resistance around 1.6300-1.6360. Should it break the level it may go to the key resistance 1.6750.

Tenkan-Sen and Kijun- Sen has fromed a «golden cross», Kijun-Sen is directed upwards, Tenkan-Sen is directed up as well. Ichimoku cloud has changed its direction, Chinkou is below the chart, the price is above the Ichimoku cloud.

The upward movement will be continued as long as the Kijun-sen is below the price.

Bollinger bands are widening, turning upwards. MACD histogram crossed the zero line from the down up, its volumes are growing.

Trading recommendations

The potential target of the growth is the resistance level 1.6120 with a possible retesting of 1.6140. If GBPUSD comes back under 1.6040 we can assume that the upward correction is over.