GBPUSD 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 |
Despite rising briefly to 1.6745 last week, lack of follow through buying and the retreat from there on dollar’s rebound across the board suggest a minor top is formed there and correction back to the Tenkan-Sen (now at 1.5902) and possibly 1.5800/05 is likely, however, as this move is still viewed as correction of the move from 1.4398, downside should be limited to 1.5572 (50% Fibonacci retracement of 1.4398-1.6745) and price shall stay well above the Kijun-Sen (now at 1.5124), then another rally might take place in latter part of Q3.
On the upside, whilst recovery to 1.6495/00 cannot be ruled out, price should falter well below 1.6745 resistance and bring correction to abovementioned downside targets. If price rises above 1.6745 resistance again, this would extend the upmove from 1.3500 low towards 1.6950 (50% Fibonacci retracement of 2.0399 to 1.3500), then towards 1.7222 (200% projection of 1.3655 to 1.5068 measuring from 1.4396) but upside should be limited to the Ichimoku cloud top at 1.7375 and the currency pair should stay well below resistance at 1.7445 (previous support turned resistance.
On the daily chart, after hitting fresh 2009 high of 1.6745, the British pound quickly turned south on profit taking and fell to as low as 1.6095, as this move broke below both Tenkan-Sen and Kijun-Sen, suggesting a temporary top has been formed at 1.6745 and correction to 1.5948 (38.2% Fibonacci retracement of 1.4398-1.6745) would take place, below would extend to the chart support at 1.5802, however, Ichimoku cloud top (currently locating at 1.5740) would contain downside and bring rebound later.
On the upside, it is quite likely that price may test back the Tenkan-Sen (now at 1.6420), however, upside should be limited to 1.6497 (61.8% Fibonacci retracement of 1.6745-1.6095) and price should meeting renewed selling interest around there and fall again later. Only if price rises above resistance at 1.6664, then a retest of 1.6745 cannot be ruled out but it is necessary to see a break of this level to confirm upmove from 1.3500 has once again resumed to 1.6850 and eventually 1.6950 (50% Fibonacci retracement of 2.0399 to 1.3500).
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