22, October 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pair looks like it wants to go higher, in this case it will meet its first obstacle in the range of 1.6231 - 1.6259. The data from the U.S. and the UK can easily push the pair for a break. The pair movement will be determined by the key data published this week.

Technical perspective suggests that GBP/USD has to pass the resistance at 1.6231 - 1.6259 to break up. Technology wave Elliotta says that GBP/USD is in the 5th wave, the target is 1.6432. The support is at 1.6123 and at 1.6000.

There is a strong and confirmed buy signal, as the chart is consolidated below Chinkou span, and the Ichimoku cloud is above the price.

The upward movement will be presumed until the Kijun-sen is located at the level 1.6060, being below the price.

Bollinger Bands are widening, showing a buy signal.
The MACD histogram is growing.

Trading recommendations

The rebound from the 1.6140 support level will allow the price to come to a strong resistance level 1.6240 for the second time, 1.6275 is the retest of the weekly level. We expect a consolidation.