GBP/USD In A Fragile Uptrend
Alexandros Yfantis | Feb 09, 2016 06:18AM ET
GBP/USD is trending higher inside an upward sloping bullish channel as can be seen in the chart below. Price remains above the Ichimoku cloud support as it makes higher highs and higher lows. However the upward move is far from impulsive and this makes me believe that the downtrend will resume soon.
As long as price is above the Ichimoku cloud and the 1.4250 price level trend remains bullish. Once we break below 1.4250 we will get the first bearish signal that could push price below 1.40.
Price has reached the 38% Fibonacci retracement and got rejected as can be seen in the daily chart above. Price is now testing the kijun- and tenkan-sen indicators support, so a daily close below 1.44 will be an indication that short-term trend is reversing to bearish.
As always, thank you for taking the time to catch up on my thinking
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