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GBP/USD Candlesticks and Ichimoku Analysis

Weekly
    •    Last Candlesticks pattern: Long white candlestick
    •    Time of formation: 16 Jan 2017
    •    Trend bias: Down

Daily
    •    Last Candlesticks pattern: Long white candlestick
    •    Time of formation: 18 Apr 2017
    •    Trend bias: Near term up

GBP/USD – 1.3003

Cable’s retreat late last week on profit-taking suggests a week of consolidation below recent high at 1.3048 would be seen and although price has rebounded from 1.2769, reckon upside would be limited to 1.2955-60 and 1.3000 should hold, bring another retreat later, below 1.2830 support would bring test of 1.2769 but break there is needed to signal a temporary top has been formed, bring retracement of recent upmove to 1.2700-10 and possibly towards the upper Kumo (now at 1.2669), having said that, reckon downside would be limited and previous resistance at 1.2616 would turn into support and contain dollar’s downside, bring rebound later.

On the upside, whilst initial recovery to 1.2955-65 cannot be ruled out, reckon resistance at 1.3015 would hold from here, bring another retreat later. Only a daily close above said resistance at 1.3015 would signal retreat from 1.3048 has ended, bring retest of this level later. Once this recent high at 1.3048 is penetrated, this would signal the upmove from 1.1986 low (Jan low) has resumed for retracement of early downtrend, hence further gain to 1.3050-60, then 1.3100 would be seen, however, loss of near term upward momentum should prevent sharp move beyond 1.3140-50 (38.2% Fibonacci retracement of 1.5018-1.1986) and reckon 1.3200 would hold.

Recommendation: Stand aside for this week. 

On the weekly chart, as cable has retreated last week after meeting resistance at 1.3048, suggesting minor consolidation below this level would be seen and pullback to the Tenkan-Sen (now at 1.2707) cannot be ruled out, however, reckon 1.2665-70 would limit downside and bring another rise later, above 1.3015 would bring retest of 1.3048 but break there is needed to confirm recent upmove from 1.1986 low (2017 low) has resumed, bring retracement of early decline to 1.3090-00, then towards 1.3140-50 (38.2% Fibonacci retracement of 1.5018-1.1986) but price should falter well below 1.3200-10, risk from there is seen for a retreat to take place later.  



On the downside, below 1.2830 would bring test of 1.2769 support, break there would bring correction to the Tenkan-Sen (now at 1.2707), however, downside should be limited to 1.2665-70 and bring another rise. Only below previous resistance at 1.2616 would abort and signal top is formed instead, bring weakness to 1.2550-60, however, still reckon downside would be limited and previous support at 1.2515 should remain intact.

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