23, January 2014

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound rose to a six-day maximum versus the dollar before the publication of the environment report on a labour market. The IMF raised its forecast for the GDP growth in the UK in 2014 to 2.4% from 1.8%. Meanwhile the balance of industrial orders by the CBI fell in January to -2 12 in December after two months of growth, whereas the reduction only up to 10 was expected. At the same time the growth of new orders in the manufacturing industry was the strongest since April 2011, the index of industrial production also increased.

The northern movement is canceled after the pair broke the cloud downwards. The price is below the cloud and above the Chinkou Span.

The downward movement will be in a force as long the price is below the Kijun -sen. Kijun-sen and Tenkan-Sen are directed down. Tenkan-Sen is crossing Kijun-sen horizontal.

Bollinger bands indicator is broadening and directed upwards.
The MACD histogram is in a positive zone, showing a growth.

Trading recommendations

The unexpectedly appeared demand for British pound, including in distributed frame with the Euro, has provoked a strong puncture resistance, and the pair course rose to 1.6485. Kickbacks are minimal and they continue to attract the interest to purchase.

Thus, the attitude towards the pound remains positive, and in the short term it may breach the 65th figure. The loss of the 64th figure would weaken the bullish movement.