25, June 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

George Osborne, the UK Minister for Finance, will present a report concerning the expenditure of the year 2015-2016 this week. The house price index Nationwide will be published this week as well. It is expected that the increase in the average UK house prices will be continued. It is possible that a number of government initiatives that are implemented to support the economic recovery helped this.

The price has left the Ichimoku Cloud. Tenkan and Kijun are going down, if the lines cross each other they may form a "dead cross". Chinkou Span is below the price which confirms the current sell signal and indicates a bearish sentiment of the pair.

Ichimoku Cloud stopped growing. A short-term support can be expected at Kijun-Sen.

Bollinger Bands show a continuation of the downward movement. Its bands are narrowing.
MACD is going down.

Trading Recommendations

We believe that the pair GBP/USD is going to come down to the level 1.50. British pound shows the relatively worst dynamics, which even more stimulates Carney's, the new Governor of the Central Bank, monetary policy. The pair is being traded around 1.5440. The UK bank noted that after the break below 1.5410 the risk of weakness towards 1.50 and 1.49 increases.