GBP/USD: Ichimoku analysis (May. 16)
By Tatyana Norkina, FBS
The currency pair continued its corrective decline. Even Kijun-sen failed to stop the bears. The pair slipped to the neutral area between Tenkan and Kijun and the Cloud. In the near future the prices may recover to $1.6850, as the prevailing upward trend persists.
Chart. Daily GBP/USD
H4. The past week at H4 was a turning point – the indicator lines have become completely bearish. Thus, the Dead Cross, formed a week earlier, remained in place, and the Ichimoku cloud became bearish. The prices themselves breached the lower border of the Cloud, finally settling in the negative zone. Therefore, the depreciation can be extended further. But the oversold market is likely to halt the rapid decline.