25, November 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Recently, the British economy is showing the signs of recovery, which has a positive effect on the rate of the national currency. According to statistics, only for the last month the amount of budget funds increased due to raising tax rate and the recovery of business activity. However, economists are still worried about the situation with regard to public debt, which reached 75.4% of GDP in October. However, the Ministry of Finance reports that the situation is under control, and there is no cause for any concern.

The British pound struck the upper limit of the trading channel on the H4 chart and will likely continue to strengthen. The nearest resistance level is the 1.6240 psychological mark. .

Tenkan-Sen and Kijun- Sen has fromed a «golden cross», Kijun-Sen is directed upwards, Tenkan-Sen is directed up as well. Ichimoku cloud has changed its direction, Chinkou is below the chart, the price is above the Ichimoku cloud.

The upward movement will be continued as long as the Kijun-sen is below the price.

Bollinger bands are widening, directed upwards. MACD histogram crossed the zero line from the down up, its volumes are growing.

Trading recommendations

We recommend opening long positions above the 1.6200 with the target in the area of 1.6250-1.6300 and protective orders at around 1.6170.