29, July 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

After the release of data on GDP for the second quarter, the pair came under sales. The indicator showed that the growth rate of the economy is speeding up, but most traders were waiting for exceeding forecasts, and that was the reason why the pair slipped from the opening level 1.5313 to 1.5261 low.

However, a report on orders for durable goods in the U.S., which turned out a quite weak, could push the pair to a maximum 1.5435.

The upward movement continues. The price broke 1.5300 last week and keeps growing to 1.5440 now. Should the pair overcome this target the upward movement may continue growing to the second resistance level 1.5600.

The upward movement is maintained as long as the price is above the Kijun-Sen. The Kijun-Sen and Tenkan-Sen are directed upwards. The price is above Kijun-Sen and Tenkan-Sen. The Cloud is growing.

Bollinger Bands indicator shows an upward movement, the bands are directed up.
MACD is in a positive area.

Trading Recommendations

The British pound was marked by a correction after the release of the GDP data for the second quarter and quickly returned to the growth. The pair overcame the resistance at 1.5375 and targeted to the area 1.5475. The motion is supported by the data of fundamental analysis as grounds for additional monetary easing policies are beginning to decline rapidly. The signal for the resumption of the growth will be the closing price above the upper Bollinger band on the hourly chart.