29, May 2013

GBP/USD (a 4-hour chart)

General overviewGBP/USD (a 4-hour chart)

It should be noted that the market has the largest short position since the beginning of 1990. The UK economic calendar is poor this week.

The pound does not show high volatility towards the dollar. The pair could start aside correction slowly moving in the range 1.5145 - 1.5100.

The pair slightly slipped and was able to gain a foothold on the level 1.5400 at the American session yesterday. It is expected that the falling will be continued, it is likely that the pair reaches the local minimum, but the pair will be strengthened in the nearest time.

A strong demand for the British currency and the weakening of the dollar push the pair up. In addition, strong economic data should support the pound. We should not exclude and a further falling in a descending corridor.

Bollinger Bands formed a side channel.
MACD is in the negative zone, the indicator returned to a growth.

Trading recommendations

You can start trading from 1.5030 (1.5050) with take profit at 1.5200 (1.5310).