28, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

According to Hometrack house prices increased the most in the UK this month over the last six years.

Average values increased by 0.4% in England and Wales. As it was reported yesterday this is the biggest monthly increase since May 2007. London prices grew by 0.9%.

Chinkou Span is below the price that is bearish signal. Tenkan-Sen is below Kijun-Sen. Kijun-Sen and Tenkan-sen formed a "dead cross". Tenkan-Sen is directed upwards, Kijun-Sen is horizontal. The Cloud is directed down.

Bollinger Bands indicator has formed a lateral channel.
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.