GBP/USD Candlesticks and Ichimoku Analysis
|
Last Candlesticks pattern |
Time of formation |
Trend bias |
| Weekly |
Shooting star |
3 June 2009 |
Sideways |
| Daily |
N / A |
N / A |
Up |
Once again the British pound faltered below recent high at 1.6664 and retreated from there, however, cable found renewed buying interest at 1.6231 and rebounded again, forming another candlestick with a relatively long lower shadow. As price is still touching the bottom of the Ichimoku cloud, suggesting a retest of 1.6664 is still possible, however, only a break above this level would confirm the rise from 1.3500 low has resumed and further gain towards 1.6950 (50% Fibonacci retracement of 2.0399 to 1.3500) would follow, then towards 1.7222 (200% projection of 1.3655 to 1.5068 measuring from 1.4396) but the currency pair should stay well below resistance at 1.7445 (previous support turned resistance and this level is slightly above the current level of Ichimoku cloud top at 1.7434).
On the downside, if resistance area at 1.6622-1.6664 continues to cap sterling's upside, then retreat to 1.6300/10 cannot be ruled out but it is necessary to see a clear break of 1.6187 support to confirm top has been formed and bring correction to 1.6000. However, support at 1.5802 should remain intact.
On the daily chart, cable went through several very choppy trading sessions last week as we can see on the daily chart with long shadows on both upside and downside, however, as the Kijun-Sen has started turning upwards, suggesting the picture remains bullish for recent upmove to resume after consolidation and once price is able to break above 1.6622 resistance, this would confirm and retest of 1.6664 resistance would follow. However, break of recent high at 1.6664 is necessary to confirm to bring headway to 1,6800 and then 1.6935 (50% projection of 1.4398 to 1.6664 measuring from 1.5802) but price shall stay far below 1.7202 (61.8% projection of 1.4398 to 1.6664 measuring from 1.5802) calculated resistance.
On the downside, a pullback to 1.6400/05 is still possible but renewed buying interest should emerge well above the Kijun-Sen (now at 1.6209) and bring upmove to aforesaid upside targets. Only a daily close below 1.6187 support would prolong consolidation within 1.5802-1.6664 trading band and another corrective decline to 1.6000 cannot be ruled out.
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