GBPUSD: weekly review (28/11)
Tatiana Norkina, FBS analyst
Daily. After the pair found support around the 1.5600 figure, it was followed by a corrective recovery. As a result of the growth, the currency pair rate got inside the daily Tenkan-Kijun channel, which turned the market flat. Let us note that all indicator lines are currently directed sideways.
Despite this fact, the main downtrend is still in effect. Prices movement below the Tenkan line could trigger new sales of the currency pair. In case of consolidation above Tenkan-sen, we will expect recovery to the Kijun line.
Chart. Daily GBP/USD
H4. On the four-hour timeframe, the currency pair is inside the Ichimoku cloud. However, there was no rapid growth to the upper limit of the range since the bulls' path was blocked by a strong level in the 1.5775/80 area. After almost a 24-hour testing of this level, the buyers hastened to get rid of the gained positions, which led to a decline of the rate below the support of Tenkan and Kijun. If no reverse transition occurs in the near future, we should expect abolition of the golden cross and the resumption of the downtrend.
Chart. H4 GBP/USD