30, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

All attempts to recover to the level 1.4980 failed. A renewed strong demand for oversold British pound, in addition with strong data from Europe pushed the pair up. The British pound shot up to the level 1.5150.

We expect the falling to continue after a strong growth in the past few months. Analysts and investors expect a gradual strengthening of the pound. It could grow to the resistance level 1.5145. The long-term upward movement is expected. Still we do not see the pair above 1.5250. After a short growth we expect the fall to 1.4960.

Bollinger Bands formed a side channel.
The MACD confirms the downward trend on the daily chart, the histogram is in the negative zone below the signal line and is directed downward.

Trading recommendations

The pound continues to strengthen its positions, but so far all its attempts look like a correction. To improve the technical picture the pound has to get back above 1.5160, then an upward movement might continue to 1.5220 and 1.5250.

In the case of downward movement, the pair will go to 1.5040.