23, July 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Economists expect the growth rate will be doubled after the news of retail sales for the second quarter point to growth in consumer spending. Good weather conditions have had a positive impact on production in the construction sector, the volatility of which in recent quarters had a negative impact on the prospects for economic growth in the UK.

The upward movement continues. The price broke 1.5300 yesterday and it is headed to 1.5440 now. Should the pair overcome this target the upward movement may continue growing to the second resistance level 1.5600.

The upward movement is maintained as long as the price is above the Kijun-Sen. The Kijun-Sen and Tenkan-Sen are directed upwards. The Cloud is growing.

Bollinger Bands indicator shows an upward movement, the bands are directed up.
MACD is in a positive area.

Trading Recommendations

The pair broke the resistance 1.5300. However, as long as it is traded close to 1.5300, the downward risks remain, and the resumption of the downtrend is likely to re-test the support of 1.4810-1.4830, the overcoming of which confirms the development of medium-term downtrend with the next target at 1.4230 support area.

Only a break and consolidation above 1.5300 will improve the short-term outlook and open the way to further recovery of 1.5750.