GBP/USD (a 4-hour chart)
The pair is still in the correction. GBP/USD could not cross Kijun-Sen line and fixed above it. Today we expect the resumption of downtrend.
The current sell signal is confirmed and strong as Chinkou Span entrenched below the price chart and the price is below the Ichimoku cloud. At this point the goal of the downward movement is the second support level 1.5667 but only when the correction is over.
When the price overcomes this target the downward movement can proceed to the third level of support 1.5587. The downward movement is maintained as long as the price is below the Kijun-sen (1.5765). If the price fixes above this line a sell signal will become weak and the movement will be able to proceed to the bottom of the Ichimoku cloud.
Chinkou Span is below the price chart that only confirms the current sell signal and a bearish mood of the pair.
Bollinger Bands show that a downward movement will be continued. Its bands widen and downwards. It is recommended to open short positions in the market.
MACD is up, indicating that corrective movement, if the indicator changes its movement to the downward direction it could be a signal of the resumption of the downtrend.
If the price is fixed below the support level 1.5733 it could also mean the completion of the correction.
We advise you should consider short positions with the first target – 1.5667. After passing that line the price might go to the level – 1.5587.
It is recommended to place stop-loss above 1.5765 and while the price lowering move down and stop level.
When you have profits 50 - 60 points, stop-loss can be breakeven.
Another signal to open new sell order will be if MACD turns down or the price rebounds from Kijun-sen or fixes below 1.5733.
Take-profit can be placed just above the target levels - 1.5675 and 1.5595. In addition to the technical picture you should also consider the fundamental data.