28, August 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound also continued to strengthen against the U.S. dollar, mainly due to high rates of the British economy.

The Central Bank continues to focus on the economy in the presence of a large number of unused spare capacity, which is reflected in the forecast of the rate of unemployment, falling below the target level of 7% is not expected until 2016.

GBP/USD formed a shooting star on the weekly chart. The pair was not able to close above 1.5700. The major support is at 1.5510/00. The further support is at 1.5420 and 1.5370.

Ichimoku Analysis

The pair keeps working out a "golden cross. The current buy signal is strong and confirmed, as Chinkou span entrenched above the price, and the price is above the Ichimoku cloud.

If the growth continues, the pair will continue growing to 1.57. First the pair needs to consolidate at 1.56, reached the other day. The cloud is directed upwards. Tenkan-sen is slightly increased and the Kijun-sen is horizontal.

Bollinger Bands indicator shows an upward movement, the bands are directed down.
The MACD histogram is located in a negative zone near to the zero level.

Trading Recommendations

GBP/USD continues to be traded above the support 1.5555-60, which was reached last Thursday. This mark is a crucial support. Therefore, a break below 1.5500 will cancel a short-term bullish scenario, and will focus traders on a minimum of 14 August 1.5422. The next support is around 1.5350. To save the bullish momentum the pair should soon rise above Friday's high 1.5638.