24, April 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Earlier this week, GBP slowly fell against the dollar due to the high demand for the currency. At the end of yesterday's trading session, the pair reached the major resistance level 1.5300 and consolidated near it.

Yesterday the pair turned and went down in anticipation of the Ian McCafferty's speech, a member of the Monetary Policy Committee.

We have a weak signal to sell. The Tenkan-Sen is below the Kijun-Sen. The Tenkan-Sen and Kijun-Sen are directed sideways. The Cloud is falling.

"Bollinger Bands" are broadening and directed downward, now it is recommended to go short.

MACD is in a negative zone which also confirms falling.

Both indicators suggest the southern movement of the pair.

Trading recommendations

It is likely that in the short term the pair will strength its positions due to the high demand for the pound, in the medium term the pair could return to the level 1.5370.

Still we have a sell signal. The pair came out of the Cloud. Should the pair consolidate under the Cloud the southern movement will be continue.

There might be a correction in the direction of the Cloud to the level 1.53.

It is recommended to place the pending sell orders near the 1.5270 with take-profit at 1.5180 and 1.5120.