03, 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

The pound/dollar is likely to be traded downward, while it is lower than Tuesday's maximum 1.5476.

The support is at 1.5138 of May 31. This level break will target the pair to the lowest point of May 29 – 1.5006. However, the growth above 1.5476 will weaken the short-term negative outlook, targeting the pair to a maximum of 21 June at 1.5529 and then at 1.5664.

The weakening below the support level 1.5006 will open the way to falling to 1.4829, a minimum of March 12.