GBP/USD (a 4-hour chart)
The GBP on February 14, continues to work out "a dead cross". Yesterday the pair kept on its downward movement and worked out 1.5590 level. The current sell signal is confirmed and strong as the Chinkou Span is fixed above the price chart, and the price is below the Ichimoku cloud.
For this moment the goal of the downward movement is the level of support 1.5545. The price has just tested this level but has not overcome it.
If the price overcomes this target, the downward movement will be continued to the next level of support – 1.5462. The downward movement will be actual as long as the price is below the Kidjun-sen (1.5683).
If the price consolidates above this line, the sell signal will be weakened; an upward movement can begin and form a new “golden cross".
The Chinkou Span is above the price chart that only confirms the current sell signal indicating a bullish mood of traders.
Bollinger Bands shows a downward movement its bands are rather wide. While the price is below Kidjun-sen &^*&^ the downward movement keeps its going.
MACD is down and indicates a downward movement .If this indicator changes direction on the upward it can become a signal for a correction. If the price is fixed above level 1.5545, it also can provoke a correction.
We advise to consider a selling short on the market with the goal 1.5545. If the price overcomes this target the goal becomes – 1.5462. It’s recommended to place the stop loss above 1.5710 and if this line goes down you also can move down the stop loss after it
When we get profit of 50 - 60 points, stop-loss can be moved to a breakeven. It will be possible to open new sell orders if MACD turns downwards or price will fix below level 1.5544. You may place take profits slightly above than target levels.
Besides a technical picture it is also necessary to consider the fundamental news and the time of their release.