21, November 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British currency remained in a narrow range versus the dollar waiting for the information from the Fed.

The Bank of England has signaled to the market that the discount rate will be raised only after their achieving the unemployment level at 7% (it is currently 7.6%). All investors should switch their attention to the statistics from the United States soon. Should it come out negative the British currency may strengthen to a mark 1.6165.

Support levels are: 1.6060 - 1.6010 and resistance levels are: 1.6130-1.6165.

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

The British pound could not break through and gain a foothold above the current resistance level 1.6140 for three days. Now the deep retest of 1.6140 is possible. The potential targets for downward movement are: 1.6050 and 1.6000.