22, November 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Pound updated its monthly maximum after the publication of BoE Meeting Minutes, but not for long and then it suddenly fell. The UK is expected to accelerate its economic growth in the short term. Availability of credit and the conditions for company investment has improved. The driving forces of the acceleration are the growth of household spending and the housing market.

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, directed upwards. MACD histogram crossed the zero line from the down up, its volumes are growing.

Trading recommendations

The pair feels a little pressure, but the growth is likely to continue with the aim of testing the resistance at 1.6300-1.6380, in the case of its break and consolidation above it the road which the road to 1.6750 will be opened.