25, April 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

GBPUSD is being traded in a descending manner. Bears are quite careful that's why the trading picture has changed little.

Investors are waiting for the new drivers to the action, which may be, for example, economic data from Europe. However, some experts believe that the euro will remain relatively stable until the May meeting of the ECB.

Yesterday the pound continued to drift between the resistance level 1.5300 and the support 1.5200. In the early days the negative data from Europe threw the pair back to 1.5250 level.

We have a weak sell signal. The Tenkan-Sen is below the Kijun-Sen. The Tenkan-Sen is directed upward, the Kijun-Sen is going sideways. The Cloud is falling as well.

"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

In the future, the pound most likely continues the growth against the dollar on strong investor demand for the British currency. Investors prefer the pound against the unstable euro.

The pair may continue strengthening to the level 1.5370. Today Britain's GDP is published, we expect GDP growth. These data may enhance the rate of the pound.

We advise to open buy orders with profit-taking at the level 1.5370.