25, March 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound finished the week on a positive note. The British currency was not afraid of problems with Cyprus and consolidated at new maximums. The substantial support to the pair gave macroeconomic news.

Retail sales in the country rose in February. Economists predicted improvement rate, but the growth has exceeded all expectations.

The pair continued to grow.

The pair is above the cloud. We have a strong and confirmed buy signal. The Tenkan-Sen is going upwards, the Kijun-Sen is vertical, the cloud is growing.

If the price returns to the southern movement it will go to the first support level –1.5065. Still we have an upward movement. The price is being traded at 1.5250. If the pair consolidates at this level the pair will continue rising to 1.5360.

Bollinger indicator started to grow.
MACD is above the zero line indicating that the further growing continues.

Trading recommendations

It is likely that the pound will show a weaken upward trend. The pair caught the wave of growth, but it's hard to say how long it will last.

In the case of growth the pair will move to the level 1.5250, after consolidation at it the pair will continue to grow to 1.5360.

The pound can return to the downward movement if MACD turns down.

The first target of the downward movement will be the level 1.5065. Should the pair break through this level and fix below it the pound will go to 1.4940.

Besides technical analysis be advised to consider the fundamental news as well when you make a decision.