Forex: Ichimoku Clouds. Review of GBP/USD for October 25, 2013

October 25, 2013


On the four-hour chart Tenkan-sen line has crossed Kijun-sen from above and then again from below. Chinkou Span line is approaching the price chart from above, current Kumo is ascending. This week the pair has been trading within a wide range of 120 points, and now the price is above Tenkan-Sen (1.6192) and Kijun-Sen (1.6185) lines, which play the role of support. The next resistance level will be one of the previous highs of the Chinkou Span line (1.6240).


Let’s look at the daily chart. Tenkan-sen and Kijun-sen lines have merged above the cloud and they are both horizontal, indicating the sideways movement of the price. Chinkou Span is above the price chart from above, current cloud is ascending. The closest support level is Kijun-Sen line at 1.6077. One of the previous maximum of Chinkou Span line is expected to be a resistance level at 1.6278.

Key levels

Support levels:  1.6192, 1.6185, 1.6077.

Resistance levels:  1.6240, 1.6278.

Trading tips

Both charts show us a slowdown of the upward trend. However the signal to open short trades will appear after the breakdown of support level 1.6077, followed by confirmation signal from Chinkou Span (the cross of the price chart and the green line). Meanwhile targets for long positions are 1.6240 and 1.6278.

Anastasiya Glushkova

Analyst of LiteForex Group of Companies

Publication source
LiteForex information  LiteForex reviews

October 24, 2016
Important economic events for the coming week
Monday, October 24, 2016 - JPY Small Business Confidence (OCT), EUR Markit/BME Germany Manufacturing PMI (OCT P), USD Markit US Manufacturing PMI (OCT P)...
October 21, 2016
US Presidential Election: Final Debate Aftermath
With the dust having settled after Wednesday final US presidential debate of the 2016 campaign between Donald Trump and Hillary Clinton, the results have become rather apparent...
October 20, 2016
Doting on Draghi
The ECB meeting arrives today when EURUSD is testing key levels. The mid-year lows at 1.0952 is perilously close as I write, whilst the post-Brexit referendum low of 1.0913 being in the frame after that. It’s hard to see the ECB adding to its quantitative easing policy...

Tickmill Rating
OANDA Rating
FXTM Rating
Larson&Holz IT Ltd Rating Rating
HotForex Rating

TropicalTrade Rating
EZTrader Rating
IQ Option Rating
Anyoption Rating
Grand Option Rating
OptionRally Rating