Baxia Markets
September 28, 2021

Crash on GBPUSD

technical analysis top header -01


As can be seen from the four hours chart, the price has made a big jump, where the price had fallen from 1.367 to 1.353 in one bar. Although this fall was expected, since we already have a pennant pattern with a downward trend ahead, the slope was steeper than what we expected. The price line broke out the Bollinger Bands by a significant margin. Although the Bollinger Bands became broader, they still could not catch the falling price. Will the price continue to fall?




The standard deviation goes up because the price makes huge fluctuations; this could mean that the price will keep making big changes. MACD makes a death cross, which is within our expectations. Although the signals above all show the price may continue to go down, there are different understandings. Standard deviation means the fluctuation may continue, but it does not specify the direction. The Stochastics reach the oversold area, which is unstable, allowing the price to bounce up anytime. Also, the crash itself is an unstable trend.


We love to hear new ideas from traders and want to know what you think! 


If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.


Open Live Account  


Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 


Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. 


Subscribe by Email