Technical analysis and trading recommendations for the GBP/USD currency pair for January 14, 2010

4-day timeframe

The whole picture:

Purchase signal formed and denoted the target at 1.6392. The first target of the current movement is reached at 1.6212. The price fixated above the major resistance level also. For this reason, the next target of the movement is the minor resistance level of 1.6397. Moreover, the day timeframe supports the upward movement outlook. Chinkou Span is higher than the price graph that testifies about the upward movement. For now, Ishimoku lines are supporting the upward movement. In case of the price strengthening below Kijun-sen the purchase signal will weaken and it will need to shorten long positions. Bollinger Bands are also up-directed that signals about the upward movement, Bands are widening that pointing that the upward movement is continuing without any signs of ending. MACD is also moving up.

Trading recommendations:

On this currency pair, the continuation of the upward trend is possible. The price stood above the major resistance level of 1.6212, the target is the minor resistance level of 1.6397. With this target is recommended bullish trading. Stop loss is below 1.6113.

The picture clarification:

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.

Good luck in trading,
Stanislav Polyanskiy
January 14, 2010