BTC/GBP continues trading in the red on Tuesday with its upside capped by 5-DMA. It is currently trading at 1852 levels at press time (Coinfloor).

Ichimoku analysis of daily chart:

Tenkan Sen: 1999

Kijun Sen: 1986

On the upside, resistance is seen at 1908 (38.2% retracement of 2315 and 1657) and a break above would see the pair testing 1977 (5-DMA)/2024 (10-DMA). Further strength would target 2060 (20-DMA)/2105 (trend line joining 2315 and 2193).

On the flipside, immediate support is seen at 1823 (50-DMA) and a break below would target 1795 (61.8% retracement of 1475 and 2315)/1720 (Cloud top). Further weakness would target 1657 (June 15 low).

Momentum studies: Overall bias appears bearish as RSI is weak at 44, MACD line is below the signal line, and stochs suggest lower bias. Bias remains weak on the hourly charts as well. On the weekly charts, RSI and stochs are on the verge of a rollover from the overbought zone.

Call Update: We had advised going short in our previous call. The pair has hit TP1.

Recommendation: Bias is still lower, stay short. Lower trailing stop to 1977. TP: 1795/1720.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest