27, September 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

In the UK, the Financial Policy Committee members said they were ready to act if the financial risks remained and continued to threaten economic stability. After the statement of BoE guide, markets are becoming more demanding to the Bank of England actions. Speaking about growing concerns about bubble in the housing market, FPC stated that it has some instruments to cool tensions, including the additional capital requirements for mortgage loans and tighter tests for lenders.

The current buy signal - strong and confirmed, as Chinkou Span is above the price, and the price broke the Ichimoku cloud. The Kijun -Sen and Tenkan -Sen are crossed in a "golden cross" on a daily chart. Both trend lines are growing parallel to each other. The cloud is growing.

Bollinger Bands shows an upward movement. The bands are widening and going up. We should consider a long position.
The MACD histogram is directed upward, indicating the current uptrend.

Trading Recommendations

If this price continues to fall we believe it can go further and we can expect the formation of a deeper correction down. The potential levels are 1.5900, 1.5820

If the bulls want to continue the growth, they need to break 1.61 and 1.6140 to start. This breakthrough opens the way to 1.62.