GBP/USD: Ichimoku analysis (Dec. 6)
Daily. GBP/USD fell from the year highs around $1.6440 set at the beginning of the week. Consolidation led the currency pair to Tenkan-sen which formed support at $1.6290. Taking into account the fact that the market is overbought, we can assume that the correction may extend further, causing prices to test Kijun (KS). The overall mood of the indicator remains bullish, but all the lines are directed sideways.
Chart. Daily GBP/USD
H4. GBP/USD fell to the upper limit of the Ichimoku Cloud. Senkou Span A can slow down the decline, but the Dead Cross will encourage sellers. Note that short-term prospects of the pair will be determined by the location of Chinkou Span line below the price chart. Therefore, in the coming week the correction is likely to continue. The nearest strong support level is in the $1.6230 area.
Chart. H4 GBP/USD