22, July 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Once the retail sales data was released the pound grew against the dollar. In June, the growth rate is up 0.2% in comparison with the previous month, economists had expected growth of 0.3 percent.

Foreign exchange rate of the pound on July 22 also corrected to the Kijun-sen, the pair was unable to overcome it and bounced, resuming the upward movement to the first level of resistance.

The upward movement is targeted to the first resistance level 1.5300. In the case of overcoming this target the upward movement may continue growing to the second resistance level 1.5440.

The upward movement is maintained as long as the price is above the Kijun-Sen. The Kijun-Sen and Tenkan-Sen are directed upwards. The Cloud is grwoing.

Bollinger Bands indicator shows an upward movement, the bands are directed up.
MACD is in a positive area.

Trading Recommendations

The pair keeps trying to test resistance at 1.5300. However, as long as it trades below 1.5300, the downside risks remain, and the downward trend is expected to continue to support the re-testing of 1.4810-1.4830, the overcoming of which will confirm a development of a medium-term downtrend with the next goal is at 1.4230 support area.

Only a break and consolidation above 1.5300 resistance will improve the short-term outlook and open the way to further recovery of 1.5750.