GBPUSD: Consolidation before a downtrend

Sachin Kotecha Sach Capital Limited

If we look at the daily chart of GBPUSD, we can see that Tenkan Sen is converging towards Kijun Sen, which will result in a bearish cross of the two should they cross. Senkou Span A is diverging from Senkou Span B, giving rise to a larger bearish future Kumo. Indicating lower prices to come providing that the price stays below Kijun Sen. Chikou Span is firmly within the price, suggesting that we are likely to see the price consolidate, at least until the Chikou Span is free of the price.

Author

Sachin Kotecha

Sach Capital Limited

Sachin Kotecha started currency trading in 2005 whilst at University studying Mechanical Engineering. Sachin continued trading whilst going on to do a Master/PhD in Engineering and trading part time whilst being employed as a University Academic.

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