30, May 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

Yesterday's price breakthrough was a positive event for the bulls, but the growth has attracted interest in the sales at the level 1.5200. To reinforce its positions the pair should consolidate above this level.

We believe that the bullish mood will not last long at the market. The economy, both in the UK and Europe, is not joyful; the UK Central Bank may take more drastic measures, especially starting from July when the bank will have a new head - Mark Carney.

Ichimoku Analysis

Chinkou Span is below the price chart. Tenkan-Sen line is below the Kijun-Sen. Tenkan-Sen and Kijun-Sen are directed upwards. The Cloud is directed down.

The upward movement is targeted to the first resistance level 1.5190 if the price consolidates above this level the upward movement will continue to 1.5250.
The upward movement will be continued until the price is trading above the cloud.

Trading recommendations

The buy signal is weak, though confirmed. If the pair consolidates above the cloud, it will go to 1.5250, but until then, the price should work out the level 1.5190.

In case of return to the downward movement the pair returns to Ichimoku cloud and will go to 1.5100.