The most significant signal of the previous trading sessions was the intersection of the Tenkan and Kijun lines, which is considered as a signal of a change in trend in the market.
The second important signal is a change in the color of the Kumo cloud, which is marked with a vertical purple line on the graph. The appearance of a lilac color in the cloud indicates a change in the priority direction of movement to downward.
The current situation
Let’s carefully look at the current values of the main components of the Ichimoku indicator to assess the current state of the market:
At the moment a signal of three lines is being observed on the GBPUSD chart. Within this signal, the indicator lines are arranged in a certain sequence. Particularly, the price is above the red Tenkan line, the blue Kijun line, and the Kumo cloud. This signal indicates the predominance of an upward movement.
Now the Kumo cloud is tinted lilac, which indicates a possible change in price dynamics in a negative direction.
Currently, the Kumo cloud lines represent a dynamic support area for price.
Used by investors to identify a change in trend, the green Chikou line is held below the price on the chart.
Trading recommendations:
Dynamic support levels are seen at the Tenkan line near 1.34277, the Kijun line around 1.34267, the SenkouA line near 1.34146, and the SenkouB line around 1.33550.
Thus, the incoming signals from the Ichimoku indicator support a scenario with a continuation of the upward movement. Against this background, intraday it is worth considering entry points into long positions when the price rolls back to support levels.
