23, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound fell yesterday after the UK statistics release. Traders are very disappointed in retail sales in the country. As a result - a sudden falling.

The England economy cannot start to recovery. Traders are concerned about this and decided to reduce their presence in the local currency. The latest releases on retail sales may convince the regulator to start an even stronger reduction of the pound.

Chinkou Span is below the price that is bearish signal. Tenkan-Sen is below Kijun-Sen. Tenkan-Sen and Kijun-Sen are directed downwards. The Cloud is directed down.

Bollinger Bands are turning. We expect the pair continues to fall.
MACD is in the negative zone, the indicator returned to falling.

Trading recommendations

The pair speeds to 0.9761 last Friday maximum. The upward trend is gaining strength if it does not subside we can expect a break above 0.9780 which will open the way to 0.9809. The correction is expected only if the pair goes below 0.9648. The first goal is the level 0.9600, the second is 0.9578

The goal for the north movement is the resistance level 0.9809. Should the price consolidate there it will grow towards 0.9850.