Friday, April 01, 2016

GBP/USD Started Falling Again





During the past few weeks GBP/USD has been moving in a way that has been quite beneficial for anyone interested in trading in it, since it has been so predictable.

All one had to do was to follow the signals appearing on the daily time frame and the movements to obvious levels of support and resistance up until the next signal that appeared on the daily time frame. I wish it is always this way, but unfortunately it’s not.


After the last two doji candlesticks formed under the resistance coinciding with the upper band of Bollinger bands (the blue line) and (EMA)89 (the green line) the pair started falling again. Its target is most likely 1.4060.

If it can break below that support then the next level of support is at 1.3850.

I think that if that a breakout below the support at 1.3850 occurs then then bearish trend will continue. For the moment it’s too early to tell and we will have to wait and see what candlesticks will form in the following days.

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