25, July 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Data on mortgage lending in June were lower than the forecast, but above the May data: 37,300 against expectations of 38,500 and an upwardly revised in May of 36,300. The pound has moved sideways in a 25-point amplitude.

The upward movement continues. The price broke 1.5300 the day before yesterday and keeps growing to 1.5440 now. Should the pair overcome this target the upward movement may continue growing to the second resistance level 1.5600.

The upward movement is maintained as long as the price is above the Kijun-Sen. The Kijun-Sen and Tenkan-Sen are directed upwards. The price is above Kijun-Sen and Tenkan-Sen. The Cloud is growing.

Bollinger Bands indicator shows an upward movement, the bands are directed up.
MACD is in a positive area.

Trading Recommendations

The resistance level 1.5396 is within reach, the pair is expected to grow further towards 1.5438. Because of the strong upward momentum, standing behind a wave of growth with minimum "bear trap" 9 July 1.4813, the pair is aimed to achieve the minimum required growth target 1.5438. In the broader perspective it may strengthen to 1.5500 and 1.5550. The support at 1.5296, Monday's low and then 1.5258 would limit the scope for a corrective easing of the pair.