FX.co ★ GBP/USD technical analysis and trading recommendations for June 7

4-hour timeframe

Overview:
An uprising movement ended having not reached a target level just a little. A ‘sell’ signal with a target at 1.4126 has formed. The signal is confirmed as Chinkou Span has confirmed below the price curve and in close future the price can overcome the lower limit of Ishimoku cloud. Therefore, a current target of the downtrend is the first support level of 1.4315. Senkou Span B is an obstacle on the way of the price moving down. In case of the price fixing below 1.4315, next target will be the second support level of 1.4177. If the price fixates above Kijun-sen the signal will be considered as weakened. Bollinger bands testify to descendant movement. MACD is going down indicating current falling trend.
Trading recommendations:
In these circumstances, it is advisable to bear with the target of 1.4315, but in the event that the price fixes below this level the next target will be the level of 1.4177. Entry the market with short positions is recommended after the price fixation below Senkou Span B. Stop loss to set above 1.4590.
The chart annotation:
Ishimoku indicator:
Tenkan-sen — red line
Kijun-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.