20, March 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The trading was rather calm yesterday. There have no been noticeable changes since Monday. The pound is being traded near the resistance level 1.5100.
Analysts believe the latest data on the pair stands for its growth as the euro has not been a desirable candidate to buy lately.

The pair is above the cloud, the Kijun-Sen and Chinkou Span are below the price, the Ichimoku cloud starts growing.

If the price returns under the cloud, under the Kijun-Sen and Chinkou Span, the southern movement resumes to the first support level –1.4940.

Bollinger midline is turned in a horizontal plane. The price range formed a flat channel and is not narrowing any more. The indicator shows the flat in the medium term. We do not see the clear trading signals.

MACD began to go down; its histogram is above the signal line. We recommend opening short positions in the short and very short-term.

Trading recommendations

According to the indicators the correction is over. Bollinger shows a low volatility, MACD is going down.

It is possible that the pair to be in a correction in the nearest future. The pound positions do not look firm. The pair can still show something against the euro, but strong growth against the dollar we should not expect.

In the case of growth the pair will move to the level 1.5180, after consolidation at it the pair will continue to grow to 1.5250.

Pound can return to the downward movement if MACD turns down.

The first target of the downward movement will be the level 1.4940. Should the pair break through this level and fix below it the pound will go to 1.4800.

Besides technical analysis be advised to consider the fundamental news as well when you make a decision.