24, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pair GBP/USD remains bearish, falling from a high 1.5584, increasing the likelihood of a further downward trend. The lower band of Bollinger bands is still a strong support that holds the pair from a further falling.

We expect a correction in the nearest future as the negative sentiment reached a fever pitch. Thus, the correction to 1.5182 is more likely, then the price could head towards 1.5010, after which might go to 1.4824.

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

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

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.