FX.co ★ GBP/CHF Ichimoku analysis for May 19, 2011 года

H4

As expected, after a slight consolidation near 1.2300 the GBP/CHF continued to decline. Yesterday downside targets were consequently reached - 1.4260 and 1.4200. Afterwards a High Wave formed on these levels and the market started to consolidate again. All Indicator lines took a turn to sideways (1, 2, 3, 4), thus pointing to a possible short-term recovery.
Nevertheless, the main downtrend remains. The Ichimoku Cloud has a negative character, and the Tenkan-sen and the Kijun-sen are keeping the Dead cross (5).

H1

In 1-hour timeframe the downtrend remains as well. Here the Ichimoku Cloud has a negative character too, and the Tenkan-sen and the Kijun-sen formed another Dead cross (5) yesterday.
Nevertheless, right after this the bulls started to buy the British currency, which resulted in prices entering the Tenkan-Kijun channel (3, 4). It is possible that the trading will be located above the Rotation line (3), but the Chinkou Span has not entered the oversold zone yet. This might lead to another testing of yesterday’s low. After this the bulls might bring the price back to the Tenkan-Kijun channel and even try to recover the GBP/CHF price to the lower limit of the Cloud.