21, August 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The targets of a new monetary policy are admirable. The UK economy, while moving forward, is still working at full capacity. But, to keep the progress that has been recently gained Carney will need creativity and skill of the Canadian exports.

Ichimoku Analysis

The pair keeps working out a "golden cross. The current buy signal is strong and confirmed, as Chinkou span entrenched above the price, and the price is above the Ichimoku cloud.

If the growth continues, the pair will continue growing to 1.57. First the pair needs to consolidate at 1.56, reached the other day. The cloud is directed upwards. Tenkan-sen is slightly increased and the Kijun-sen is horizontal.

Bollinger Bands indicator shows an upward movement, the bands are directed up.
The MACD histogram is still located in a positive zone, but slightly below the signal line. MACD continues to gradually decline, and thus sends a signal to sell the pair.

Trading Recommendations

We can talk about the down turn after the pair breaks below 1.5620, thus opening the way to a rising trend line to 1.5590. A trend line break would open the way to such levels as: 1.5550, 1.5490.

Am alternative may become a continuation of the price consolidation within the lines of resistance 1.5680 - 1.5610, forming a symmetrical triangle.