4-hour timeframe
Overview:
The pound is continuing sideways movement, the price has been located between 1.6470 and 1.6260 for a long time, now the Ichimoku might form false signals. The Tenkan-sen and the Kijun-sen are now forming a buy signal, but as it was already mentioned, false signals are likely to be formed as the Ichimoku is a trend indicator. Therefore it is recommended to stay outside the market until the trend movement starts. The Chinkou Span is above the price graph, which indicates bullish sentiment of market participants. The Bollinger Bands show sideways movement, the lines are not diverging and directed sideways. The MACD is descending, which demonstrates current downside movement withing the sideways price channel.
Trading recommendations:
Currently it is recommended to stay off the market until the trend movement starts. The beginning of trend movement will be shown by the Bollinger Bands that will start to diverge.
In addition to technical image, one should take into account the fundamental data and the time of their release.
Chart annotation:
Ichimoku 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 white bars in the indicators window.
