Ichimoku cloud analysis: GBP/USD

Read Time: 2 minutes

Current Situation:

  • GBP/USD is currently testing the Ichimoku indicator’s signal lines, which can indicate a potential change in direction.

Bearish Signs:

  • The pair is going below the Ichimoku Cloud, suggesting a possible downtrend.

Support Levels:

  • You expect a test of the lower boundary of the Cloud at 1.2670, followed by a decline to 1.2475.

Confirmation of Downtrend:

  • A rebound from the upper boundary of the bearish channel would further confirm the downtrend.

Bullish Scenario:

  • This bearish scenario can be invalidated if the price breaks above the upper boundary of the Cloud and secures a position above 1.2715.

Potential Upside:

  • A breakout above the Cloud could indicate further growth to 1.2805.

Additional Notes:

  • It’s important to remember that technical analysis is not a perfect science and should be used in conjunction with other factors like fundamental analysis (economic news events) for a more comprehensive understanding of the market.
  • Keep an eye on upcoming economic data releases that could impact the GBP/USD, such as US Nonfarm Payrolls data scheduled for release this coming Friday.