GBP/USD Ichimoku Analysis
I no longer day trade forex. I only invest in foreign exchange pairs, such as GBP/USD, in the longer term.
I use Ichimoku Cloud Analysis across all the assets that I invest in, including stocks, ETFs and cryptocurrency.
Today I'm creating a GBP/USD strategy, looking at the pair across different time frames in order to decide whether or not we have a solid bullish signal to act on before or after the UK general elections 2019.
I combine my own analysis style with the Ichimoku Kinko Hyo strategy development technique including indications from the Ichimoku cloud.
Fundamental Analysis
Last week was a rough week for the USD as the latest U.S. business sentiment data knocked it down early in the week to levels it couldn’t recover from, even after a very strong U.S. employment update. This week, we have the U.S. consumer price index and the FOMC rate decision that could impact the USD. On the other side of the pond, the UK is holding its general elections on Thursday, December 12th, which could get the GBP moving and shaking.
Technical Analysis
Today I’m looking at the pair which has been stuck at the 1.3155 resistance level it hit last Thursday. Utilizing the Ichimoku strategy from a longer time frame, weekly chart, we have a brand new Ichimoku indication.
The GBP/USD pair confirmed a break above the weekly Ichimoku cloud, and it’s also in the process of forming a double bottom bullish reversal chart pattern. Now with the Ichimoku signal, we normally expect a temporary pullback after the bullish break, which could create an optimal buying opportunity for long-term bulls.