19, December 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British currency was one of the strongest assets yesterday. The pound grew versus all major currencies. The pair got the support from the UK inflation which unexpectedly slowed its growth, the unemployment figures supported the pound as well having come out lower than it was expected.

No change is expected in economy policy and the November unemployment figures have not shown significant changes compared with the previous period.

Yesterday the pair made an attempt to grow to 1.65, but, nevertheless, the GBP/USD could not reach this level, bouncing back to 1.6400-1.6430. The pair still have good chances to grow, the first target is the level 1.6752. The minor resistance is located in the area 1.6622.

The main direction is northern. Chinkou-Span mounted below the price and the price is above the Ichimoku cloud.

Northern movement remains until Kijun-Sen is higher than the price. Tenkan-sen and Kijun-sen are directed upwards.

Bollinger shows the growth, the bands are widening.
MACD is in the negative zone. Now the histogram is attempting to cross the bottom up its signal line and thus give a buy signal.

Trading recommendations

The retest of the support level 1.6247 was accompanied by a rapid reversal up. The volumes do not support the rebound. Consolidation is expected before the pair continues growing to 1.6380 and 1.6500.