GBPUSD Bull looks towards benefiting from this Bounce – Technical Analysis, Ichimoku Cloud

GBP is looking good and nice, with a strong trend, and holding on the daily timeframe. This is another excellent opportunity for bulls to get in and take advantage of this strong bullish trend.

It is evident that the price bounces on the cloud and it may move up with a nice reversal candle.

Cloud looks strong, and the USD is losing ground every day against the majors. This constitutes a remarkable opportunity to take the advantage of the market.

As for the lines, we may observe that the Tekan Sen and Kijun Sen are still in bearish formation. However, a possible explanation for this is that the price is trying to get back and touch the lines. This is called market equilibrium in Ichimoku terms, meaning that the market may come back to the lines so that to be a balance in the market.

At this moment, the market can turn the opposite side so what we should look out is if the price bounces on the Tekan Sen (white line) and turns back, then we may see the price to try and break the cloud once again. In this case, we may see a new Koumo break out a signal to the downside, and at that time we may consider going short.

In the short term 1H time frame, we can see that the price is still in a bear mode. Nevertheless, have in mind that the long-term trend is still up and with the daily bounce on the cloud. This may give us the opportunity to get in long early when the Ichimoku signal “Kumo break out” is in place. To have a Kumo break out the valid signal we need all the lines and the price to be out of the Kumo with the Teakan Sen and Kijun Sen in bullish mode (Tekan above Kijun).

This article was written by Marios Athinodorou, TeleTrade’s market analyst, and commentator. Among others, Marios is delivering weekly trading webinars. Sign up for upcoming webinars here.