06, March 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

At the end of yesterday's trading the pair fixed above the Kijun-sen having weakened the "dead cross". The pair was in a correction yesterday. Despite of the yesterday's upward movement the trend remains bearish.

The pair is above the Kijun-Sen. The Chinkou Span is below price, the Ichimoku cloud is looking bearish.

The southern movement will be resumed when the price will return below the Kijun-Sen (1.5099). If the upward movement continues it will weaken more a "dead cross" and can cancel the current downward movement.

We still have a strong sell signal. The pound keeps falling. The target of the downward movement is 1.5051. Should the price consolidate at this level the southern movement resumes to 1.4940.

Bollinger Bands shows a continuation of the downward movement. Its bands are going down and broadening.

MACD also confirms the downward movement.

Trading recommendations

The market is bearish. The first goal of the southern movement is the level 1.5051. If the price is fixed at this level it will go to 1.4941. The next target is 1.4800.

Stop loss can be placed above 1.5146. Take Profit target can be placed just above the target levels.