12, 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" on a daily time-frame. Still there is a correction. The current sell signal is weak and confirmed, as Chinkou Span is below the price, and the price is below the Ichimoku cloud.

At this point the pair is consolidating in a price range: 1.5070-1.5170. The downward movement is targeted to the support level 1.4890. After passing this target the downward movement may go 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.

Trading Recommendations

Trading recommendations: Taking into consideration the fundamental premise, it is advisable to sell the pair with a break below the 1.5030 level. The primary goal is 1.4950. In case of development of further falling the next target is 1.4810. Stop-Loss should be placed at the level 1.5230.