19, November 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

According to Mr. Miles, there is a way to reduce the risks to the British housing market - for example, real estate buyers loans. Now the British government is already using this mechanism, but its use could be wider. Miles did not say anything about monetary policy.

Wee see the pair in a moderately upward trend today. The nearest resistance is at around 1.6165.

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 British pound has been trading in a sideways range for two months, fighting off the levels 1.6230 - 1.5900. Last week, the rebound from 1.5900 level was accompanied by a downward trend line breakout of 1.6060, which gives a good signal for a continued growth with a target - 1.6230.