19, July 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The National Bureau of Statistics of the United Kingdom reported that in June Initial Jobless Claims dropped to the lowest level for three years. However, wage growth continues to be weak underscoring the pressure on consumer spending which threatens the country's economic recovery.

The upward movement is maintained as long as the price is above the Kijun-Sen. The Kijun-Sen and Tenkan-Sen are directed upwards. Both lines are horizontal. The Cloud is declining.

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

Trading Recommendations

The pair made an attempt to test resistance at 1.5300 and then began to decline. The first target is likely to retest support 1.4810-1.4830, the overcoming of which confirms the development of a medium-term downtrend with the next target at 1.4230 support area.

Only a break and consolidation above 1.5300 resistances will improve the short-term outlook and open the way to further the restoration of the resistance 1.5750.