27, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

UK GDP in the I quarter of 2013 grew by 0.3% compared to the IV quarter of 2012. These data were published by the National Bureau of Statistics on Thursday. UK GDP is growing slowly but it looks better than France and Germany GDP.

Chinkou Span is below the price that is bearish signal. Tenkan-Sen is below Kijun-Sen. Kijun-Sen and Tenkan-sen are working out the "dead cross", moving down. Tenkan-Sen line is directed upwards, Kijun-Sen is horizontal. The Cloud is directed down.

Bollinger Bands are broadening. We expect the pair continues to fall.
MACD is in a negative zone, the indicator returned to growing.

Trading recommendations

We recommend going long above 1.505 support line, setting a target at 1.5155 and 1.5190.

Alternatively, a correction to 1.5100 and 1.5040 is possible.