4-hour timeframe
Overview:
Buy signal for GBP is getting stronger as the price has fixed above the Ishimoku cloud. Signal was formed in a flat that is why Ishimoku does not display the target level. The current signal is strong and confirmed as Chinkou Span has fixed above the price chart while the price has fixed above the Ishimoku cloud. That is why the first target of the upward movement is level 1.5881 – the first resistance level. In case the first level is passed the next target is considered to be the second resistance level 1.5986. In case it fails to overcome any of the resistance levels the correction will start. The critical level above which the upward movement remains is 1.5710 (Kijun Sen); below this level it is recommended to reduce long positions. Chinkou Span is above the price chart that proves the current buy signal. Bollinger Bands show the continuation of the upward movement, lines again widen and direct up. MACD rises given a signal that the up-trend is resumed and correction is completed.
Trading recommendations:
Currently it is recommended to trade up with the first target 1.5881 and then 1.5986. Stop Loss is below 1.5665. In case of MACD downside reversal it is recommended to reduce long positions because of the possible correction.
In addition to technical image, one should take into account the fundamental data and the time of their release.
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
