26, August 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British currency got under pressure. The market supported dollar after FOMC minutes were published provoking the GBP/USD sale. As a result, the British pound has lost all the gains against the dollar which has carried out last week. It is obvious that the reason for this is the lack of strong economic news which has supported the pound by positive news lately.

Ichimoku Analysis

The pair keeps working out a "golden cross. The current buy signal is strong and confirmed, as Chinkou span entrenched above the price, and the price is above the Ichimoku cloud.

If the growth continues, the pair will continue growing to 1.57. First the pair needs to consolidate at 1.56, reached the other day. The cloud is directed upwards. Tenkan-sen is slightly increased and the Kijun-sen is horizontal.

Bollinger Bands indicator shows an upward movement, the bands are directed up.
The MACD histogram is located in a positive zone approaching to the zero level.

Trading Recommendations

If the bears fail to break below the support level 1.5485 today it is more likely we can expect a short-term growth with a target - 1.5550, 1.5620 (forming the right shoulder of the potential reversal pattern "head and shoulders").