29, August 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The British currency was the most vulnerable at yesterday's session and decreased against dollar following the results of the day. There were no news from Britain yesterday, the pound remained under the influence of external information and news on escalation of political conflicts, naturally, pressured the British.

The pair was traded in the limited range 1.5440 – 1.5600, without having made any special changes to a technical picture. It continues to decrease to the region of the lower limit of the ascending channel.

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

Yesterday's approach to level 1.5485 was accompanied by a kickback up to the level of resistance 1.5550. The formation of a consolidation near the level says that the price will beat off from level down and again will try to test support 1.5485.