20, September 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Bank of England policy, as shown by the minutes, and the Federal Reserve kept the asset purchases unchanged, while the British pound rose to its highest level in seven months against the U.S. dollar. Sterling not only broke the key level 1.60 but it also struck 1.61 and, apparently, it is able to test 1.62. From its current levels, in fact from 1.6175, the pair fell at the end of 2012.

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

There is a strong resistance level 1.6300 on the way up, which has not been broken for 1.5 years with the exception of failed retest.

Volumes of yesterday's growth showed an increase, which basically gives further reason to believe the medium-term continuation of the bullish trend to the level of 1.6300.