3 bar bearish confirmation GBPUSD sell oppertunity

GBPUSD Analysis

23 April 2020

By

Michael Brunette

Senior Fundamental Analyst

Wadafox Trending

Good day,

It looks like the bears have started to enter the market at the higher price level of the pound as bulls are still weary as to where the pound will start to really pick up pace. And it seems it is not there yet and the bears are in full force.

The RSI is now in the sell zone again after a brief stint above the 50 level which shows the lack of confidence in Cable to break free of its current level. 

It did however push up past the 1.23850 resistance level and turned out to be a false break out by perhaps pending orders being executed. It is now back to its original level and should remain there before breaking to the downside. 

I know I keep going on about the "downside", but realistically I don't see the pound changing its trend until after the pandemic is contained, economic data may offer a relief for the bullish traders out there but I still hold firm the market is biased towards the bears.

The figure shows a bearish 3 bar confirmation of the downward trend. So keep an eye out for any bullish reversal signs to place new sell limit orders after it has been exausted and follow the market down towards the 1.22650 level.

Keep an eye out for our post updates.

Happy Trading

(The information provided is purely speculative and we do not accept any gains or losse that may result from our analysis)