GBP/NZD: Ichimoku clouds



Let's look at the four-hour chart. Tenkan-sen line is below Kijun-sen, the red line is directed downwards, while the blue one remains horizontal. Confirmative line Chikou Span is approaching the price chart from above, current cloud is ascending. 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 (1.9650). The closest resistance level is Kijun-sen line (1.9806).




On the daily chart Tenkan-sen line is above Kijun-sen, the blue line is directed upwards, while the red one remains horizontal. Confirmative line Chikou Span is above the price chart, current cloud is ascending. The instrument is trading above Tenkan-sen and Kijun-sen lines; the Bullish trend is still strong. The closest support level is Tenkan-sen line (1.9556). One of the previous maximums of Chikou Span line is expected to be a resistance level (1.9916).


On the both charts the instrument is still falling. It is recommended to open short positions at current price with Take Profit at the level of previous minimum of Chikou Span line (1.9645) and Stop Loss at the level of Kijun-sen line (1.9811).

Scenario

  • Timeframe

    Weekly

  • Recommendation

    SELL

  • Entry Point

    1.9745

  • Take Profit

    1.9645

  • Stop Loss

    1.9811

  • Key Levels

    1.9557, 1.9645, 1.9723, 1.9806, 1.9834, 1.9863, 1.9915.