31, July 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Pound fell on Monday before the meeting of the Monetary Policy Committee at the end of this week, where the Bank of England is expected to reaffirm its commitment to low interest rates for an extended period.

The upward movement continues. The price broke 1.5300 down and is falling to 1.5170 now. The pair is in the Cloud now. Should the pair overcome the Cloud the downward movement may continue falling to the support level 1.5170.

We have a weak upward movement the pair is in the Cloud. The Kijun-Sen and Tenkan-Sen are directed downwards. The price is below Kijun-Sen and Tenkan-Sen. The Cloud keeps growing.

Bollinger Bands indicator shows an upward movement, the bands are directed up.
MACD left a positive area and is in a negative one now.

Trading Recommendations

The British pound also continues to strengthen against the U.S. dollar. However, a strong resistance to further strengthen serves local level 1.5400, which is still impossible to overcome. A possible correction seems to be deeper than we thought. At the moment, a strong support level is 1.5300 and the upper limit of the Ichimoku cloud. Together they create a powerful support, which will not be easy to overcome.