26, November 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pair finished the upward movement at the peak last week. At the opening of the new trading session the pound rose even higher, to the level 1.6240, but then it went downward. The pair did not reach the annual maximum 1.6260, this level is very difficult for "bulls" to overcome. This week's the key news report mentioned the UK GDP for the third quarter of this year.

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 decreasing.

Trading recommendations

We have an upward movement in progress. The price bounced down from 1.6240, still the bulls are strong. To regain its loses the pair will reach 1.6170, after that it will go to re-test 1.6240.