23, August 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Positive economic data helped the pound to hold against the major currencies yesterday. Better-than-expected net borrowing in the public sector over the last month spurred investors holding sterling. CBI data suggested that the orders of British manufacturers are at the strongest level in two years adding the positive data for the UK.

Ichimoku Analysis

The pair keeps working out a "golden cross. The current buy signal is strong and confirmed, as Chinkou span entrenched above the price, and the price is above the Ichimoku cloud.

If the growth continues, the pair will continue growing to 1.57. First the pair needs to consolidate at 1.56, reached the other day. The cloud is directed upwards. Tenkan-sen is slightly increased and the Kijun-sen is horizontal.

Bollinger Bands indicator shows an upward movement, the bands are directed up.
The MACD histogram is located in a positive zone approaching to the zero level.

Trading Recommendations

There is a strong support level 1.5550 on the downtrend way of the pair. If the pair manages to break it, it is most likely to fall to the support level 1.5400. The pair may meet short support levels 1.5485, 1.5435 on the way to 1.54.