FX.co ★ GBP/USD technical analysis and trading recommendations for 14 June 2010

4-hour timeframe

Overview:
‘Buy’ signal with target level of 1.4842 keeps on. Therefore, the purchases are advisable to consider. The signal is strong and confirmed, as the price has managed to fixate above Ishimoku cloud and Chinkou Span – above the price curve. Also on Friday, we had observed the correction to Kijun-sen area, after that upward movement renewed. Therefore, now it is recommended to bull with intermediate targets at 1.4686 and 1.4812, the second and third resistance levels. In case of the price fixation above 1.4686, the next target will be the third resistance level of 1.4812. If the price fixes below Kijun-sen, it is recommended to close long positions. Chinkou Span is above the price curve, which testifies to bullish sentiment. Bollinger bands show uprising motion – the bands are diverging and up-directed, indicating continuation of ascendant movement. MACD is increasing, signaling about rising trend.
Trading recommendations:
In such circumstances, bullish trading with the target at 1.4812 is advisable. Enter the market after the price fixing above 1.4686. Stop loss to place below 1.4550.
The chart annotation:
Ishimoku indicator:
Tenkan-sen — red line
Kijun-sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line
Bollinger Bands indicator:
3 yellow lines
MACD indicator:
The red line and the histogram with the white bars in the indicators window.