25, February 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

A pound is in the correction. The pair is working out a "dead cross".

Chinkou Span entrenched below the price and the price is below the Ichimoku cloud. The target of the downward movement is the support level 1.5051. We expect the downward movement continue. The first target is the level 1.4941.

The downward movement is relevant as long as the price is below the Kijun-Sen (1.5293). Should the price consolidate above this line that might cancel the sell signal.

The Chinkou Span is below the price that means a bearish mood of traders.

Bollinger Bands show a downward movement.

MACD is pointing up, indicating an upward corrective movement.

Trading recommendations

We recommend opening short positions to 1.5051. If the price is fixed below this level, the downward movement will proceed to the level 1.4941.

Stop-loss should be placed above 1.5333.