GBPUSD - Trading in the Cloud: neutral

FX:GBPUSD   British Pound / U.S. Dollar
According to Ichimoku system it is considered to be neutral (trendless), when an instrument is trading in the Kumo. However we always have to look at all Ichimoku components together, to estimate probabilities and to have a clearer view about the possible bias.

Daily: Price is in the Cloud - neutral, Tenkan below Kijun - Bearish , but Kijun and Senkou B are flat - that is neutral too. Chikou Span is below price - bearish , but both Tenkan, Kijun and Chikou are still above the Kumo.

4 Hrs: It has been clearly a 1,6710 - 1,6820 range with sideaway move for a while, no firm directional signals at mom.

All in all we can say Price could really go in any directions from here, but there is one other notable thing. Price broke both the shorter and the longer term uptrend lines. This gives some bigger chance that this long lasting bullish trend may not be able to continue, and sooner or later may likely reverse to a bearish trend . When? Of course I don't know. No one knows. You can guess, but you can not know. It will happen when price closes below the Kumo and also manages to clear the first major support area at 1,6660 - 1,6685. Then it will become a sell on tops trade. But until it can stay in the Cloud, can try to spike above it with false break, or maybe it can even resume bullish trending.

Short positions risk reward will be the best when both price and Tenkan, Kijun, Chikou Span come below the Kumo.


And finally break happened on the top side again. That means GBPUSD is still bullish trending. This clearly shows that in Ichimoku concept the Kumo is the most important support/resistance. Until price trades in/above the Kumo, it is not wise to think in strategic short positions.
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