GBP/USD is at important level
GBP/USD approached to the bottom of the Ichimoku Cloud on Tuesday. Senkou Span A formed resistance in the 1.5940 area. For now this level has capped the pair. The break higher will ruin the current downtrend.
However, it might be difficult for the bulls to move past this obstacle: at the moment an incorrect Golden Cross is forming – the Kijun line (blue line) has set up for a decline. In addition, the Cloud keeps widening to the downside.
The oscillators look positive for now. MACD is approaching 0, while RSI is passing the channel’s middle to the upside.
As a result, there are 2 trade opportunities: to stay on the side of the bears if the price recoils down from the bottom of the Cloud or to join the bulls if the price settles above the Tenkan and Kijun lines.
Technical levels: support – 1.5890, 1.5850; resistance – 1.5940.
1. Sell — 1.5940; SL — 1.5960; TP1 — 1.5890; TP2 — 1.5850.
2. Buy — 1.5890; SL — 1.5870; TP1 — 1.5940; TP2 — 1.5980.