04, 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", still the Kijun-Sen and Tenkan-Sen are about to cross each other. That crossing can cancel the "dead cross".

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 pair stopped falling and started a correction.

All attempts to grow are likely to be short-lived and limited by 1.5300-1.5350. Only a break and consolidation above this level will improve the outlook and re-open the way to recovery to 1.5750 maximum.