28, February 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

The general overview

Pound is under pressure. The pair does not have much perspectives for growth. According to the latest reports, the GDP for the 4th quarter of 2012 fell, credit rating is downgraded, the economy is contracted by 0.3% q/q in the final quarter of last year. Pound may be falling down for a long time due to this news.

Market was calm on Wednesday. The pound is being corrected as a result of yesterday's falling. The pair decided to gather strength at the level 1.5146 for the next throw down.

The first goal of the southern movement has remained the same - the level 1.5051. If the price fixes on it, it will go further down to 1.4941.

The downward movement is actual as long as the price is below the Kijun-Sen (1.5200). If the price goes to the Ichimoku cloud that will weaken the current sell signal. But it is too far for this. We have a strong sell signal. The Chinkou Span is below the price and the price is below the Ichimoku cloud. Everything confirms the southern direction.

Bollinger Bands indicates a downward movement, its bands are narrowing and directed down.

MACD is directed down as well.

Trading recommendations

The downtrend continues, its first target is 1.5051. If the price is fixed below this level, the downtrend will continue to the level 1.4941.

Stop loss can be placed below 1.5240. Take Profit can be placed just above the target levels.