One of the most important signals in the Ichimoku indicator is the intersection of the Tenkan and Kijun lines. On the current GBPUSD chart, this signal is marked with a pink square. Subsequent developments led to a decrease in the price for the Tenkan line. The upward momentum, that was initially suggested as an intersection, did not materialize. Instead, the price showed weakness and was unable to maintain its positions.
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:
The price is below the Tenkan and Kijun lines that did not manage to react to the change in the market situation.
Now the Kumo cloud is tinted lilac, which indicates a possible change in price dynamics in a negative direction.
The price is between the SenkouA and SenkouB lines, which act as support and resistance levels. To clarify the market situation, it is worth waiting until the price goes beyond the Kumo cloud.
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 on the Kijun and SenkouB lines, around the 1.34300.
Dynamic resistance levels are on the Kijun and the SenkouB lines, around the 1.34300.
