20, November 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The publication of the last Bank of England will be published today. Market participants do not expect surprises in the respect of monetary policy. In its quarterly survey on inflation, the Bank of England has signaled that the interest rate will be raised only if unemployment reaches 7% (it is 7.6% now). To continue the positive trend the pair has to consolidate above 1.6133. The support levels are 1.6119, 1.6010-1.5900 and resistance levels: 16165-1.6250-1.6310.

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

Approach to resistance level 1.6120 was carried out on a fairly small volume.

The rebound from 1.6120 will be seen after the price once again tries to test the strength of the level. And if the price does not break the level up, there will be a fall back to the nearest support level 1.6050. The breakout of 1.6050 will open the way down to 1.6000.