22, February 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pair formed a "dead cross", the downward movement continues. The price has reached the level 1.5146 and jumped from it up to 1.5240. The sell signal is confirmed and strong. The Chinkou Span is below the price and the price itself is below the Ichimoku cloud.

If the price overcomes this level and consolidates over it, it will fall to a more senior level of resistance 1.5051.

While the Chinkou Span is below the price chart, a sell signal will be confirmed.

Bollinger Bands show a downward movement, its bands a directed down and expanding. It is recommended going short.

MACD is down, indicating a continuation of the south movement. If the indicator changes its direction, the pair shall begin a correction.

Trading recommendations

We have a strong sell signal. The first target of the downward movement will become the level 1.5146. Should the price break through this level it will continue going down to 1.5051.

Stop loss should be set above the Kijun-sen (1.5326). After getting profits of 20-30 points stop loss should be moved into the black.

The best place to place take-profit is a bit below the target levels.
When opening orders please consider not only technical analysis but fundamental news as well.