31, October 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

Technically, the "cable" is now oversold, which together with the preservation of monetary policy in the United States may provide an impetus to the growth of the resistance level 1.6119. In case of successful overcome of the barrier the next target is a mark 1.6165.

There is a weak and confirmed sell signal, as the price has just broken the cloud. The price chart is below Chinkou span, and the Ichimoku cloud is above the price. Tenkan-Sen and Kijun-sen are directed downwards. The Cloud is neutral. 

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 changing of the trend, the bands are turning downwards.
The MACD histogram is in a negative area.

Trading recommendations

If the price does not break 1.6050, there will be a good bounce with the further progress down to 1.6000.

A deep rising correction to the level 1.6050 or 1.6090 may be formed from the level 1.6000. After this the rebound down with the target 1.5925 is expected.