02, July 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pair continues to work out the "dead cross", the price is fixed below the first level of support and started an upward correction. MACD is turned up.

The current sell signal is strong and confirmed, as Chinkou Span is below the price, and the price is below the Ichimoku cloud.

At this point the downward movement is targeted to the support level 1.5170. After passing this target the downward movement may proceed to the second support level 1.5080.

The downward movement is maintained as long as the price is below the Kijun-Sen if the price consolidates above this line, then a sell signal will be weakened and the further downward movement will be called.

Chinkou Span is below the price that is a confirmation of the current sell signal.

Bollinger Bands show a continuation of the downward movement, the bands are directed down.
MACD is in a negative area.

Indicators support the downward movement.

Trading Recommendations

After breaking through the key support 1.5300 the pair's perspectives got worse. Now we expect the downtrend to be continued to the support at 1.5000, and then to a minimum at the level 1.4830.

It is likely that attempts to restore will be limited by 1.5300-1.5400 area. Only at the break and consolidation above this area the risk of recovery to a maximum 1.5750 will be intensified.