GBP/USD: Ichimoku analysis
Daily. GBP/USD has also corrected to the downside this week after having reached new extremes last week (1.6160). The currency pair has declined to the Tenkan-Sen support (TS) at the level of 1.5950/1.5970, but it is only the beginning: Chinkou Span shows the pair is strongly overbought. Consequently, in a longer term there is a risk of falling to the Kijun-Sen (KS). Note that this support is just below the 1.5800 figure. In general, the positive market view is still relevant: there is a gold cross, the cloud is bullish.
Chart. Daily GBP/USD
H4. The correction is better seen on the H4 chart. This week the lines have crossed above the bullish cloud, forming a dead cross (C). Cable is now traded below the Tenkan and Kijun lines. The upper border of the Cloud is creating some support in the 1.5960-1.6000 range, but the descending Kijun-Sen (KS) confirms the idea that in the near future we should expect a continuing downward short-term trend. Breaking through the 1.5960 support will open the way to the 1.5900 figure. The next strong level is 1.5870.
Chart. H4 GBP/USD
Tatiana Norkina for FX Bazooka