29, November 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pound rose to its highest level versus the dollar during the past 11 months after the release of revised UK GDP data for the third quarter. The GBPUSD has exceeded 1.63 levels for the first time since the beginning of this year. GDP Second Release coincided with the preliminary data.

Britain’s economic recovery accelerated in the third quarter, as investment and housing construction were able to offset the biggest drop in exports over 2 years. The services sector, which accounts for about 78% of the British economy, grew by 0.7 % at the 3rd quarter – the growth became the most significant within the year.

Tenkan-Sen and Kijun- Sen has fromed a «golden cross», Kijun-Sen is directed upwards, Tenkan-Sen is directed up as well. Ichimoku cloud has changed its direction, Chinkou is below the chart, the price is above the Ichimoku cloud. The upward movement will be continued as long as the Kijun-sen is below the price.

Bollinger bands are widening, directed upwards. MACD histogram crossed the zero line from the down up, its volumes are decreasing.

Trading recommendations

The pair is testing the resistance at 1.6300-1.6380 level. Breakthrough and consolidation above 1.6380 would open the way to test the key resistance 1.6750. If the resistance 1.6300-1.6380 would limit the growth, this would be followed by a rebound to the 50-day lasting SMA in its turn, acting as immediate support.