GBP/USD: Ichimoku analysis (Dec. 13)
Daily. The pair renewed highs formed a week earlier, but failed to settle above $1.6400. The market looks overbought, and traders take short-term profits. These sales resulted in the further consolidation of GBP/USD along the line Tenkan-sen, which now can’t hold pound from declining. Obviously, in the coming days the pair will be trading inside Tenkan-Kijun channel. The lines of the indicator go sideways, which also speaks in favor of the sideways movement.
Chart. Daily GBP/USD
H4. At H4 the currency pair returned to the upper boundary of the Cloud. Tenkan and Kijun have already formed the Dead Cross (C), encouraging further sales. If the prices fix under the Senkou Span A, the short-term downtrend may continue, but there’s strong support at $1.6325. Next strong level is near $1.6230.
Chart. H4 GBP/USD
Tatyana Norkina, FBS analyst