30, April 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

U.S. GDP growth was lower than the forecast was, investors were disappointed in U.S. currency and paid attention to the pound. Economists expect a strong growth in the Purchasing Managers Index PMI for the services sector which will also support the pair.

The buy signal is preserved. The pair is being traded above the Ichimoku cloud. The price is above the Ichimoku cloud, the Tenkan-Sen is below the Kijun-Sen. Both lines are directed upward. The Cloud is directed upward as well.

The pair is consolidated at the level 1.5460, currently GBP/USD is moving towards 1.5570. The upward movement will be actual while the pair is above the Ichimoku cloud.

"Bollinger Bands" are going up. We recommend going long.
MACD is growing, maintaining the upward movement.

Indicators point out to the northern movement.

Trading recommendations

The price grew to an important resistance level 1.5460 and where it consolidated. If the pair consolidates above this level, it will continue to grow to the level 1.5570.

It is also possible a roll back to the level 1.5370 (1.5350). The positive U.S. GDP data can pressure the pair.

Still while the pound is in demand we can expect it grow to the resistance 1.5410 and break trough it with the further growth to 1.5450 (1.5510).