GBP/NZD: Ichimoku clouds



Let's look at the four-hour chart. Tenkan-sen line is below Kijun-sen, the lines are horizontal . Confirmative line Chikou Span is below the price chart, current cloud is descending. The instrument is trading below Tenkan-sen and Kijun-sen lines; the Bearish trend is still strong. One of the previous minimums of Chikou Span line is expected to be a support level (1.9215). The closest resistance level is Kijun-sen line (1.9467).




On the daily chart Tenkan-sen and Kijun-sen lines have merged, both lines are directed downwards. Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument has broken down Tenkan-sen and Kijun-sen lines. The closest support level is the upper border of the cloud (1.9186). Merged Tenkan-sen and Kijun-sen lines have become a strong resistance level (1.9576).


On the four-hour chart the instrument is still falling. On the daily chart the Bullish trend is still strong. It is recommended to open long positions at current price with Take Profit at the level of previous maximum of Chikou Span (1.9215) line and Stop Loss at the level of Kijun-sen line (1.9467).

Scenario

  • Timeframe

    Intraday

  • Recommendation

    SELL

  • Entry Point

    1.9397

  • Take Profit

    1.9215

  • Stop Loss

    1.9467

  • Key Levels

    1.9186, 1.9215, 1.9467, 1.9576