26, April 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound was strengthening the whole day yesterday while waiting for the GDP publication. The pair reached 1.5300 with the help of the weak U.S. data.

Investors have guessed with the growth, as GDP data came out strong. During the first quarter of the country's GDP grew by 0.3%, the forecast was 0.1%. After the report the pair continued growth up to the resistance level 1.5460, which was never able to break.

We have a strong 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 growing.

"Bollinger Bands" are directed upward. We recommend going long.
MACD grew confirming the growth.

Trading recommendations

The price grew to an important resistance level 1.5460 on strong GDP data. If the pair consolidates above this level the further growth is inevitable.

We should also consider the option when the price rebounds from the level down. We have high chances that the pair will not be able to break through the level 1.5460 and roll away to the level 1.5370 (1.5350).

If the U.S. GDP is also positive the pair may fall to the level 1.5300.

But while the pound is in demand we can expect it to grow to the resistance 1.5410 and a break through it to 1.5450 (1.5510).