24.10.202109:16 Forex Analysis & Reviews: GBPUSD provides sell signal.

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

In our last analysis on GBPUSD we warned bulls that price was vulnerable in providing a sell signal. We outlined the reasons why we favoured a reversal from current levels and the level that will provide confirmation of the reversal. On Friday price broke below the short-term support at 1.3784 and ended the day around 1.3750.

Red lines- bullish channel

Red rectangle -support

Blue line- RSI support

Our expectations are for price to reach at least the lower channel boundary around 1.37. Price has provided a bearish signal on Friday by breaking below the red rectangle which is now resistance. Short-term trend is changing from bullish to bearish as price has started making lower lows and lower highs. Price has stopped the decline at recent lows at 1.3740-1.3750. The RSI that provided us with a bearish divergence has now broken below the support trend line and is moving lower. Currently we do not rule out a bottom around 1.37, a new higher high above 1.3830 and the RSI to provide a new bearish divergence. As long as the bullish channel holds, bulls still have hopes for another move higher.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.