28, June 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

The pair continues to work out a "dead cross", the price continued to go down. The current sell signal is strong and confirmed, as Chinkou Span is below the price, and the price is below the Ichimoku cloud.

At this point the downward movement is targeted to the support level 1.5170. After passing this target the downward movement may proceed to the second support level 1.5080.

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.

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 directed upward, indicating the price correction movement.

Trading Recommendations

The downward movement is very confidently holding support level at 1.5340. But, if the demand for the U.S. currency remains under the influence of positive macroeconomic reports, the British currency may fall to 1.52 support area with an intermediate target around 1.5270.

In order to open short positions we should wait for a break of the support level 1.5340.