FBS: GBP/USD dominated by bears
Tatyana Norkina, FBS analyst
The pair retraced into the 1.7040 area, clearly showing that the market is ready to extend bearish correction. However, the price met support at 1.7050 (lower border of the H4 Cloud), that limited the decline and returned it into the 1.7090 area.
Ichimoku. On the hourly chart there is a resistance. Bulls fail to overcome it (so far), despite the "golden cross" formation. At the same time, if the price fixes above the Kijun line, there is a potential for growth towards 1.7110.
Dead cross on the H4 chart and the narrowing point to a decline in the nearest future. Price fix below the hourly Cloud may be understood as a selling signal.
Technical levels: support – 1.6990, 1.7060; resistance – 1.7090, 1.7110, 1.7130.
1Sell — 1.7080/1.7090; SL — 1.7120; TP1 — 1.7030; ТР2 – 1.6990.