GBP/USD: Ichimoku analysis
Daily. GBP/USD maintained an uptrend after the Kijun-sen line kept the market from continuing corrective decline. Support has been formed at $1.5915 and the buying interest activated here. Over the past week GBP/USD rose to early October highs at $1.6250. Note that this growth has changed the direction of the Tenkan and Kijun (C). Now these lines are directed upwards and indicate the increase of bullish sentiment in the market.
Chart. Daily GBP/USD
H4. At H4 the situation is in favor of the buyers. So, last week, the pair moved to the positive area breaking up the resistance of all the lines of Ichimoku indicator. During this time the indicator itself has turned bullish: Tenkan and Kijun formed a golden cross (C) and the Ichimoku cloud changed its character to bullish. Note that the prices broke through strong resistance of the $1.6200 figure. And this gives a clear hint to pound’s further recovery.
Chart. H4 GBP/USD
Tatyana Norkina for FX BAZOOKA