TradeTheIchimoku
Short

GBP/USD Retracement Complete?

FX:GBPUSD   British Pound/U.S. Dollar
845 4 2
Across time scales the picture for 'cable' ( USD/GBP             ) remains very bearish and the recent bounce looks more like a brief retracement than a reveral in my mind. Applying an Ichimoku perspective the weekly chart (higher time frame) shows:

1) Price below the Kumo, Tenken-Sen and Kijun-Sen = BEARISH
2) Forward Kumo is BEARISH
3) Chikou-Span is below price and in open-air = BEARISH
4) GBP/USD             has recently had a triple top, failing to break higher = BEARISH
5) Possible Fibonacci pattern to the downside in play (23.6% on weekly) = BEARISH
6) Recent strong-form Tenken/Kijun cross to the downside with good angles = BEARISH
7) Price looks likely to test the 1.53 level (previous support) as resistance = BEARISH

Taking that weekly perspective down to the Daily there could be a good risk-reward short opportunity approaching on this pair. Again:

1) Price below the Kumo, Tenken-Sen and Kijun-Sen = BEARISH
2) Forward Kumo is very BEARISH
3) Chikou-Span is below price and in open-air = BEARISH
4) Price has drifted far from the Tenken and Kijun-sen lines (i.e. overextended from its equllibrium) - add more support tho this being a corrective move than a trend reversal = BEARISH
5) Possible Fibonacci pattern to the downside in play (38.2 on daily) = BEARISH
6) Long-term daily down trend line is in sight -if we bounce off it and head lower this is in play. If price breaks it and also the 50% Fib level the short would be invalidated and we would need to observe how price reacts with the kumo floor before deciding on the next opportunity
The short is in play and first target will be the 23.6% fib line. If we break and retest from underneath last traget will be a few pips shy of 1.49000
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I agree the trend is down but It looks it is trying to reverse if I look at the daily bars. I would buy above a certain resistance level
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