20, December 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The Fed's decision to reduce the asset purchases put pressure on the pound. Just after the news was published the pound lost some ground versus the dollar.

The pair renewed its high levels but this growth was short-lived. Nevertheless its prospects remain positive as it's trading above the support 1.6190-1.6230. Its target is still 1.6750 key resistance testing. The minor resistance is marked in the area 1.6620.

We have a buy signal - confirmed and weak as Chinkou Span is above the price and the price is below the Ichimoku cloud.

The upward movement is kept as long as the price is above the Kijun-sen. The trend lines cross each other, the Kijun-Sen is horizontal, the Tenkan-Sen is growing.

Bollinger bands show the beginning of the upward movement, the band is slightly expanded and directed upwards.

MACD histogram crossed the zero line upwards and located now in the positive zone above its signal line.

Trading recommendations

The price was unable to break above 1.6460. The fact that the price returned to the intraday resistance level 1.6430 gives a good signal to the market to expect a turn down. But before this more false breakouts of 1.6430 can take place.