22, April 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

After the fall caused by the negative statistics, the British pound began to recover. On Thursday, due to high demand, the pair went up and reached an important resistance level 1.5300.

On Friday, on the negative economic data on retail sales pair fell to the bottom of the Ichimoku Cloud, which coincided with the resistance level 1.5230.

When growth resumes, the pair can reach local maxima and even test new high levels 1.5450 (1.5510).

The pair is in the Cloud which indicates its uncertainty.

The Tenkan-Sen line is below the Kijun-Sen. The Tenkan-Sen and Kijun-Sen are directed sideways. The direction of the Cloud is neutral.

"Bollinger Bands" on the daily chart are directed upward, maintaining the upward movement.

The MACD histogram is in a positive zone and above the signal line going upwards, giving a strong buy signal.

Trading recommendations

If the pair continues to decline and comes out of Cloud that will cancel the buy signal. In this case, the pair will go to 1.5180.

In case of the growth we recommend to place pending buy orders near the level 1.5320 (1.5300) with a take-profit at 1.5510.