DTFXTrading

GBP/USD Retracement Complete?

Short
FX:GBPUSD   British Pound / U.S. Dollar
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

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