GBP/USD: Ichimoku analysis (Nov. 8)
Daily. During the past week GBP/USD took advantage of the support of the Ichimoku Cloud top on the daily chart. The bounce off the Senkou Span A served as a signal to buy the currency pair which led to the expected growth to the Tenkan and Kijun lines at $1.6100. However, it should be noted that the lines themselves had time to form a dead cross (C), which in the next few days will contain further recovery of the pair. If the price settles above Tenkan and Kijun, we can expect the bullish scenario in the long term as the Ichimoku cloud is still bullish.
Chart. Daily GBP/USD
H4. On H4 the situation in a short time can also become bullish, as last week the pair has significantly recovered. The prices broke the resistance of the Ichimoku cloud and now intend to gain a foothold in the positive zone. Tenkan and Kijun provided support for the prices during the recent corrective decline, so these lines are actually making traders more optimistic. If the prices fix above the upper boundary of the Cloud, this will open the way to $1.6190.
Chart. H4 GBP/USD
Tatyana Norkina for FBS