19, September 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

GBP/USD was trading unchanged till the FED's desicion not to change its policy. The inflation as it was expected was 2.7% in August, comparing with the same period of the last year.

Still the mood of the pair is blown up by the basic consumer price index that was 2.0% in August compared with 2.2% of the forecast and the reference of the Bank of England keeping interest rates at ultra low levels until the unemployment rate in the UK not to fall to 7.0%.

The current buy signal - strong and confirmed, as Chinkou Span is above the price, and the price broke the Ichimoku cloud. The Kijun -Sen and Tenkan -Sen are crossed in a "golden cross" on a daily chart. Both trend lines are growing parallel to each other. The 4 hour time frame is much the same. The price is above the Cloud being traded above its upper boundary. The cloud is growing.

Bollinger Bands shows an upward movement.
The MACD histogram left the negative zone and is growing.

Trading Recommendations

The pair grew yesterday. The jumped was very strong and we believe that pair remains on the present level or it is possible a pullback to 1.6075.