H4
The GBP/CHF currency pair is still consolidating slightly above the 1.4000 level. At the same time, yesterday’s trading day was quite volatile and during the trading the price even tested the horizontal Kijun-sen at 1.4100. However, the bulls could not break it up and fixate above it – the trading returned under the Rotation line (3). At the moment the consolidation continues, but the market is ready to resume downside movement any moment. It is caused by the facts that the Ichimoku Cloud has a downside character and the Senkou Span A (1) started to move downwards again.
Besides, the Kijun-sen (4) has also lost its balance and directed to the downside.
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H1
However, in a 1-hour timeframe we can see a quite controversial situation. On the one hand, the main trend is a downtrend as the Ichimoku Cloud has a downside character and the Dead Cross (5) formed by the Tenkan-sen and the Kijun-sen still applies. Nevertheless, the character of the Indicator’s lines does not allow us to be sure that the price will break down the lower limit of the Cloud – the Senkou Span A. Besides, the Senkou Span B is stuck in the candlesticks.
If in the next few hours the bears will be able to break down the Tenkan-sen and the Senkou Span A, the downtrend will probably remain. Otherwise a recovery to the upper limit of the Kumo is possible.
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