FX.co ★ Technical analysis and trading recommendations for GBP/USD for July 9, 2010

4-hour timeframe

Overview:
The ascendant movement is likely finished and a sideways motion has begun. All the current signals of Ishimoku can be freely ignored, as they are false within the flat. Therefore, trading before trend movement is not recommended. Bollinger bands will signal about the beginning of new trend. Now Bollinger bands are showing the flat – the bands have converged and directed sideways. In the closest future, this indicator will show by the bands diverging where the trend will be directed. MACD is decreasing, although its reading is also unimportant.
Trading recommendations:
Waiting for a trend is advisable.
Except the technical picture, fundamental reports and time of their release should be considered also.
The chart annotation:
Ishimoku indicator:
Tenkan-sen — red line
Kijun-sen — blue line
Senkou Span A — light brown stipple line
Senkou Span B — light purple stipple line
Chinkou Span — green line
Bollinger Bands indicator:
3 yellow lines
MACD indicator:
The red line and the histogram with the white bars in the indicators window.