29, October 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The release of retail sales for October was published by the Confederation of British Industry. The indicator set the maximum value of the current year in September. The United Kingdom residents are feeling more confident and can afford to spend more than to save.

"Cable" is tired of growth in the previous week and technical analysis is indicating a decline in quotations to the support level 1.6120.

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 1.6189, 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

The British pound has not been able to penetrate and consolidate above the strong resistance level of 1.6230 for six days, despite the fact that the price is being traded in the direction of the rising trend line.

In the medium term, the upward movement is gradually reduced. Decrease to 1.5950 is possible.