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flag ★ Technical analysis of the currency pair GBP/USD for 06.07 – 10.07

Forex Analysis:::2009-07-06T13:16:51

Technical analysis of the currency pair GBP/USD for 06.07 – 10.07

Daily timeframe.
Technical analysis of the currency pair GBP/USD for 06.07 – 10.07
Looking at the technical image we can clearly see a possible changing movement.The price is below Tenkan-sen and Kijun-sen lines. Tenkan-sen directed downward which supports the further prospects of an downward trend. Currently, some of indicators are signaling about the possible beginning of a downward movement. Kijun-sen is still up-directed signaling that the ascending motion may recover. Tenkan-sen turned down, so it is recommended to cut the long positions, in case this line renews the upward motion, it will be possible to increase long positions again. Meanwhile, the purchase signal continues to be fulfilled, formed by a Tenkan-sen and Kijun-sen cross-cut. The Tenkan-sen and Kijun-sen lines are the nearest support levels now. Ishimoku indicator is the resistance level. We can suppose that the next motion target will be the upper border of Ishimoku indicator. Ichimoku indicator continues its up — going movement and a little bit narrows, signaling about the weakening of the upward scenario. Chinkou Span is above the graph, which also signaling about the up — going motion. At fixing the price below Tenkan-sen it will be possible to consider on a small downward movement.

Bollinger Bands:
This indicator also shows the sideways moving. The lines narrowed and going aside. As we can see, the price broke through the low line of Bollinger band, which says about a possible downward trend motion. In case Bollinger bands go down, then it will be possible to consider the downward motion. Consequently, the beginning of the down — going motion is probably now. If the price won\'t tick up from the low band during the current day, then the downward ovement probably will continue. Tenkan-sen considers the down — going mood, we may wait for the forming of purchase signal.

This index shows a downward trend at this time. For more confidence in descending movement it is necessary to wait for this signal confirmation, for example, in the form of Bollinger bands reversal. It is likely, that the most possible variant of events\' development is continuation of the upward movement.

Explanations to the chart:
Ishimoku indicator:
Tenkan-sen — a red line
Kijun-sen — a blue line
Senkou Span A - light — brown dotted line
Senkou Span B — light — purple dotted line
Chinkou Span — a green line

Bollinger bands indicator:
3 yellow lines

Indicator MACD:
A red line and a hystogram with white bars in the indicator\'s windows.

Have a good trading.
06 July, 2009
Stanislav Polyanskiy.

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