As we can all see price actually broke 1.37000 last Thursday and consolidated between the 1.37500 resistance area and the 1.37000 support area before breaking below this major support. Currently, price is rejecting the support area by creating a very strong signal for a move to the downside which is a bearish pinbar candle. In addition the MA (moving average) crossover that we always use for more confirmations about an upcoming move and in this case the 1h MA crossover is just 1 pip from happening. Moreover, all this three signals (1. break & retest of the 1.37000 key area, 2. the bearish pinbar candle and 3. the 1h MA crossover) give us better propabilities for this move to the downside with our target for this trade being the 1.35845 touch to the bullish trend line that was formed in the past. In conslusion, I will be making an update on GBP/USD once we hit our target and the reason for that is the possibility for a much bigger drop if price breaks below this trend line.
This was my analysis on GBP/USD and I hope you like it, see you on the next one!
This was my analysis on GBP/USD and I hope you like it, see you on the next one!
