30, October 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

We shall single out mortgage lending index from the latest news. The Recent strong labor market data show an economic recovery. You can expect grow in the number of a mortgage loan claims. If the data exceeds the forecast we can expect the price growth to 1.6245.

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 could penetrate and consolidate below the strong resistance level 1.6075, the price is being traded in the direction of the ascending trend canal. The first target is 1.5954. The price has bounced from this level several times. Should the pair break this level it will go to 1.5877.