24, December 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The GBP/USD continues to move within a narrow range 3 days in a roll unable to determine the direction of the movement. During this week no major economic news on the UK will appear in connection with the celebration of the Catholic Christmas. It should be influenced by the not numerous publications from the USA.

The northern movement in the market is weak and confirmed. Chinkou Span is above the price and the price is within the Ichimoku cloud. Tenkan Sen is directed downwards, Kijun Sen is horizontal.
The cloud is neutral.

Bollinger Bands indicator points to a continued upward movement, the bands are expanded.

MACD is still in a positive area and a little above its signal line slowly decreasing.

Trading recommendations

The pair’s outlook remains positive as long as it is above the nearest support 1.6200–1.6220. The target of an expected growth still remains a testing of the key resistance 1.6750. The minor resistance can be seen at 1.6620.
A good corrective break-off down is about to happen. But for confident sales it is necessary to consolidate on the area 1.6385. In this case there will be a rebound down with the target 1.6320.