GBP/USD Technical Analysis
GBPUSD : Based on the Ichimoku system, the GBPUSD is in a bearish Kumo breakout since 20.4.2018.
As we may notice here the price is below the kumo and all the lines Kijun sen, tekan sen and Chikou span are also below the Kumo. Tekan sen and kijun sen seem to be in a bearish formation.
The chikou span is inside the price meaning that the price may start the process for reversing.
If we look at the stochastic we can see that the price is reaching the oversold 20 level giving us another clue of a possible reversal to the upside.
Now, to be able to start looking for any potential bullish signals next week we need to see the price crossing the lines tekan sen and kijun sen but also price would need to cross the cloud to the long side to have partial confirm Kumo breakout signal.
If the Chikou san line heads out of the Kumo we may get a confirmation of a potential breakout signal.
EUR/USD Technical Analysis
EURUSD : On this pair, we observed a dropdown from 19.4.2018 based on the Ichimoku system.
The price is below the cloud and below the line, Tekan sen, Kijun sen, and chikou span might be confirming the valid Kumo breakout signal.
Now the price crossed the lines may indicate a potential start of a reversal but to be able to start looking for any potential long signals we need to look for the price to cross the Kumo to the upside and the chikou span needs to be also above the price and kumo.
This article was originally posted on FX Empire
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