21, February 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

On Tuesday, the pound continued to fall.

The pound was falling the whole day, breaking through levels 1.5430, 1.5385 and 1.5353.

We believe that the downward trend shall continue. The Chinkou Span is lower than the price the price itself is under the Ichimoku cloud. All this confirms the downward movement. The goal of the pair is the support level 1.5146. If the price continues to fall, the next target is the support level 1.5051.

While the price is below the 1.5347, the downward movement will continue. If price consolidates above it a correction may begin. In this case, the pair returns at 1.5333.

The Chinkou Span is below the price that is a good sign for short positions.

Bollinger Bands are going down, showing a downward movement.

MACD is down as well, the selling is more than relevant.

Trading recommendations

The pound is going down at the moment. We have s strong sell signal. It is recommended selling the pound with the first goal - support level 1.5146

If the price fixes on it the level 1.5051 become actial. Stop loss should be set above the Kijun-sen.