23, September 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

GBP/USD pair reached the 1.6183 high as a result of the Fed's decision, rising by 200 points. The plans of the Fed to stay in a waiting state was little expected, so the market's reaction was immediate and violent. GBP/USD pulled back from its highs, but stayed above 1.60. The further falling is possible from here.

The current buy signal - strong and confirmed, as Chinkou Span is above the price, and the price broke the Ichimoku cloud. The Kijun -Sen and Tenkan -Sen are crossed in a "golden cross" on a daily chart. Both trend lines are growing parallel to each other. The cloud is growing.

Bollinger Bands shows an upward movement.
The MACD histogram is in a positive area but it is ascending.

Trading Recommendations

The price returning to the support 1.6027 was accompanied by small amounts. Probably, we should wait for a good rebound, followed by a continuation of the rising structure.

The resistance level 1.6102 appears to be a potential target to bounce up. This level break will open up the way to 1.6142.