26, February 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The pair is still in a correction. The pair is working out a "dead cross".

The target of the downward movement is the level 1.5051. If the price fixes on it, it will go further down to 1.4941.

The Chinkou Span is entrenched below the price and the price is below the Ichimoku cloud.

The downward movement is actual as long as the price is below the Kijun-sen (1.5266). Should the price consolidate above this level that fact will weaken the buy signal and may form a "golden cross".

Bollinger Bands indicate a downward movement its bands are broadening and directed down.

MACD is directed down as well indicating a downward movement. If the indicator changes its direction it will signal the beginning of a possible correction. If the price rebounds from 1.5146 level it can also trigger a corrective movement.

Trading recommendations

Now we recommend opening short positions to 1.5051. If the price is fixed below this level, the downtrend will continue to the level 1.4941.

Stop loss we place above 1.5315. Take-profit can be placed just above the target levels.