Baxia Markets
By
August 23, 2021

Downward Trend Could Continue On GBPUSD

technical analysis top header -01

 

The price had been falling for a week. And now, the price went up to the 50% Fibonacci level. This bounce-back may cause a lot of nerves. The price touched the lower Bollinger Bands and bounced back towards the middle line; however, it did not stop when it reached the middle line, which means the momentum was not just from the Bollinger Bands. So, will this upward trend continue?

 

gbpusd0823

 

I would say no. Although the support power is strong, the slope is too steep, making it easy to enter overbought territory. As can be seen, the Stochastics already shows an overbought signal. And the Standard Deviation is coming down, which means this steep fluctuation will calm down soon. There are still some bullish signals, like Parabolic SAR, MACD, and even the Ichimoku cloud is going down. However, some of them are lagging, like MACD; and the Ichimoku falls fast due to the sharp slope of the rising trend on the price line.

 

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