19, August 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Under assumptions of the experts, the Central Bank of England will continue to maintain a soft monetary policy to support the economy. This shall impact negatively on the pound. In addition, Carney said that if the UK inflation will gain momentum, the regulator may change the interest rate, while the United States plans to begin QE reducing.

On the daily chart, the pair is directed to the June high - 1.5750, but if it does not break 1.5700, it is likely to fall to the levels 1.5595-1.5470. Technical indicators turned up together, but they did not go far from their overbought levels, signaling a possible reduction.

Ichimoku Analysis

The pair keeps working out a "golden cross. The current buy signal is strong and confirmed, as Chinkou span entrenched above the price, and the price is above the Ichimoku cloud.

If the growth continues, the pair will continue growing to 1.57. First the pair needs to consolidate at 1.56, reached yesterday. The cloud is directed upwards. Tenkan-sen is slightly increased and the Kijun-sen is horizontal.

Bollinger Bands indicator shows an upward movement, the bands are directed up.
MACD changed its mind about falling and returned to growth.

Trading Recommendations

The level 1.5585 which was acted as a strong resistance, will play a supporting role now in order to stop the downward correction and continue to grow to 1.5720 - the maximum peak of the previous upward wave. If the price is able to break through today 1.5720, the uptrend will be continued until the level 1.5840