21, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Britain was able to avoid the triple recession, the Bank of England decided not to increase the QE, as the current situation GBP could attract investors as an alternative to the euro which continues to lose its ground.

At the end of the last week the pound continued its falling. The pair reached the 1.5155 level where it started a correction. The pair is trading around 1.5200, the correction could last to the level 1.5370.

Chinkou Span is below the price that is bearish signal. Tenkan-Sen is below Kijun-Sen. Tenkan-Sen and Kijun-Sen are directed downwards. The Cloud is directed down.

Bollinger Bands indicator is turning up forming a side channel.
MACD is in the negative zone and growing, the signal line left the histogram that confirms the correction.

Trading recommendations

If the falling continues, the pound will go to April 4 minimum 1.5032 and then to 1.4829. Should the pair continue growth and pass 1.5322 that would question the short-term negative outlook, targeting GBPUSD to the May 13 high 1.5384.