GBP/USD: Ichimoku analysis (Jan. 31)
Daily. British pound is still trading close to the highs, but during the past week it failed to consolidate above $1.6500. Rebound, which was earlier in the week, didn’t let the buyers to return to the market. After testing $1.6600 the prices returned to the Tenkan and Kijun lines and at the end of the week started punching down support. Note that the lines themselves quitted the equilibrium state and formed a Golden Cross (C). If GBP/USD closes the week below the short-term lines, the pair may fall to the upper boundary of the Cloud.
Chart. Daily GBP/USD
H4. The situation at H4 threatens to go into a downward. The pair fell into negative territory breaking down support of the Ichimoku Cloud. The Cloud itself is narrowing down. Short-term indicators are in favor of the bears – the Dead Cross (C) is in place. The prices are now trying to fix below Senkou Span B. If the bears succeed, pound may fall to $1.6400.
Chart. H4 GBP/USD
Tatyana Norkina, FBS analyst