FX.co ★ The technical analysis of the GBP/USD for 13.07 – 17.07

Day timeframe

Ishimoku:

Looking at the illustration, we can see the possible movement change-over. The price stood below Tenkan-sen and Kidjun-sen. Tenkan-sen is down-directed, approving the future perspectives of the downside trend. At present, some indicators point to a possible downturn movement start-up. Kidjun-sen is up-directed approving signaling that the ascending motion goes on. Tenkan-sen turned down, so it is recommended to cut the long positions, in case of upside trend recover we will be able to increase the long positions by this line. Meanwhile, the purchase signal is been tested, which was formed by the Tenkan-sen and Kidjun-sen cross-cut. These lines appeared to be the resistance. The support level is Ishimoku cloud. Presently, is seen the next target level around the Ishimoku cloud bound. The Ishimoku cloud continues its rising movement, narrowing moderately, that points at the ascending action weakening. Chinkou Span is above the price graph, that also confirms the upward tendency. In a short term the sale signal can be formed, it is better to be ready for that.

Bollinger Bands:

This indicator demonstrates the lateral motion. The lines narrowed and directed sidewards. As we can see, the price broke through the bottom Bollinger band, approving a possible descending trend beginning. The descending tendency can be considered if the Bollinger bands are down-directed. Consiquently, now the most probable outcome is the down-going motion onset. If the price doesn\'t pullback from the bottom line, then the downside move continuation is expected. Tenkan-sen affirms the downward tune, you can wait for the sale signal approval.

MACD:

This indicator showes the descending movement. For more confidence in the downward trend it is reqiured to wait for this signal approvement, for example, in the form of Bollinger bands reversal. For now, the most probable events scenario — is the dowside trend continuation.

Trading recommendations:

The sidewards move continuation is possible with the GBP/USD currency pair. So, it is recommended to start trading in case of a break through of the upper and bottom Bollinger band and Ishimoku movement approval. In case of remove from the upper or bottom Bollinger band you can trade amid the jump off with the first target — the middle Bollinger band and further to the opposite bound. Currently, the most probable variant — is a break through of the bottom Bollinger band and sale signal formation from Ishimoku.

The picture clarification

Ishimoku indicator:

Tenkan-sen — red line
Kidjun-sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line

Bollinger Bands indicator:

3 yellow lines

MACD indicator:

The red line and the histogram with the white bars in the indicators window

Have a good trading

July 13, 2009
Stanislav Polianskiy