GBP/USD (a 4-hour chart)
The pair continues to work out the "dead cross" on a daily time-frame. 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 1.4890. After passing this target the downward movement may proceed to the second support level 1.4866.
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. The Kijun-Sen and Tenkan-Sen are directed downwards. Both lines are horizontal. The 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.
As a result of the recorded last week sharp decline a reaction low at 1.4832 on March 12 is within reach now. Investors who stake on the pounds drop, regained control of the situation. We expect this week a break below 1.4832, towards levels last seen in June 2010, which would open the way to 1.4771 and 1.4690.