28, March 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The British currency continued a correction. The pound lost 80 points yesterday, having stopped at the border of the Ichimoku cloud.

The pair is being traded above the Ichimoku cloud. The buy signal is a strong and confirmed.

The Tenkan-Sen line is above the Kijun-Sen. Tenkan-Sen is horizontal, Kijun-Sen is horizontal as well. The Cloud keeps growing.

The pair retreated to the level 1.5100. If the north movement resumes the pair will go again to the resistance level 1.5180. After consolidating at this level, the pair will continue growing to 1.5250.

Bollinger indicator is targeted down its lines are narrowing.

MACD is going to the zero line. It generates a divergence with the signal line, which could mean a fall in the near term.

Trading recommendations

MACD histogram is in the negative zone at the daily timeframe. It is located above the signal line and going up. This may be a signal of a trend reversal and consolidation uptrend.

In case of further price correction will fall to the level 1.5065.

If the pair returns to the northern movement, its goal will be 1.5180, then 1.5250.

When the price moves we should move and stop-loss level. When we get profit of 20-30 points stop loss should be placed into a break even.

When you open positions consider the fundamental analysis and the time of its release as well.