27, February 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pound successfully completed the correction and continued falling down working out a "dead cross". The pair spent the whole day just above the 31-month low against the dollar, the minimum which has been set on Monday. The short term scenario - the pound shall continue falling and shall test the level 1.5300, which is a strong psychological level of support.

The target of the downward movement is the level 1.5051. If the price fixes on it, it will go further down to 1.4941.

The Chinkou Span is below the price and the price is below the Ichimoku cloud.

The downward movement is actual as long as the price is below the Kijun-Sen (1.5102).

Bollinger Bands show a downward movement.

MACD is down, indicating a downward movement as well.

Trading recommendations

Now we recommend opening short positions to 1.5051. If the price is fixed below this level, the downtrend will continue to the level of 1.4941.

Stop loss can be place above 1.5315. Take-profit can be placed just above the target levels.