22, August 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British pound has grown significantly. Still we expect the reduction of interest to the British currency. This can be explained by the lack of basic data and various reports of increased mortgage lending that has not spurred the growth of the market because of the concerns that there is possible a so-called housing bubble.

Ascending trend is unchanged, the key support 1.5606 is untouched, the following key resistance is at 1.5730/50.

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

The release of basic data on USD, including the publication of the minutes of the FOMC, will affect the break of the equidistant ascending triangle. If the breakthrough up happens there will have a new maximum 1.5750, the previous update of the ascending wave. The successful consolidation above 1.5750 will open the way to 1.5800 for bulls.