30, December 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Sterling holds trade sideways. The pound has taken “holidays” having strengthened versus the “bucks”.
There was no news and the market probably was solving issues regarding positioning. The output data from the British Bankers Association of mortgage lending is expected for November. But special changes on the market are not expected, the pair will likely continue to consolidate.

The northern movement in the market is weak and confirmed. Chinkou Span is above the price and the price is within the Ichimoku cloud. Tenkan Sen is directed upwards, Kijun Sen is horizontal.
The cloud is growing.

Bollinger Bands indicator points to a continued upward movement, the bands are expanded.
MACD is still in a positive area and a little above its signal line slowly decreasing.

Trading recommendations

A continuous consolidation was formed. This is good evidence that there will be a rebound down.
If the level 1.6323 is overcame, the way to a strong support level 1.6249 will be opened before sellers. There can be a consolidation at this level.