28, October 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

GBP/USD rebounded after a bearish reversal on Wednesday. According Elliott strategy another reduction is possible. Traders react to GDP for the third quarter, Durable Goods Orders and University of Michigan consumer confidence index.

The pair has to break through short-term resistance at 1.6259 to open the way up. The pair is most likely in a counter-trend pullback in the wave 5 with predicted to 1.6432.

There is a strong and confirmed buy signal, as the chart is consolidated below Chinkou span, and the Ichimoku cloud is below the price. Tenkan-Sen and Kijun-sen are horizontal. The Cloud is growing.

The upward movement will be kept as long as the Kijun-sen is located at the level 1.6180, being below the price.

Bollinger Bands shows a lateral signal, its bands are horizontal narrowing.
The MACD histogram is in a positive area, reducing its volumes.

Trading recommendations

Trading volumes point in the direction of the turn near the resistance level 1.6245 which may be followed by a rebound of the market down.

The potential target for a possible rebound is three times tested the support level 1.6115 - 1.6100. Its breakthrough will open the way down to 1.6050.