19, April 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

On Wednesday the pair has dropped significantly and almost approached the support level 1.5210, reaching a three-week lowest point. The decline was due to the negative data on the UK labor market, all the economic indicators in the UK are below the expectations of experts.

Currently, the pair is trading in a narrow range 1.5260-1.2530. The pair is consolidating. Experts expect that the level of retail sales to fall to -0.7%, which may cause the falling of the pound to the levels 1.5205, 1.5170 and 1.5140.

The signal to buy is still in force, although weakened. The pair is in the Cloud which indicates its uncertainty.

The Tenkan-Sen is above the Kijun-Sen. The Tenkan-Sen and Kijun-Sen are directed downwards. The Cloud has an upward direction.

Bollinger Bands are directed downwards, confirming the southern movement.

MACD is below the zero line. The indicator gives a sell signal.

Trading recommendations

We can not completely exclude a temporary correction to the level 1.5360. In the current situation, we recommend to open short positions if the price consolidates above 1.5260. Short positions are recommended to open if it breaks down the level 1.5230.