The trend of GBP/USD pair movement was controversial as it took place in the downtrend channel. Due to the previous events, the price is still set between the levels of 1.3145 and 1.2927, so it is recommended to be careful while making deals in these levels because the prices of 1.3145 and 1.2927 are representing the resistance and support respectively.
Therefore, it is necessary to wait till the downtrend channel is passed through. Then the market will probably show the signs of a bearish market.
RSI (14) sees major descending resistance line acting as resistance to push price down from here. Overall, RSI readings below 30 indicate that the pair is oversold, while RSI readings over 70 indicate that it is overbought. As the trend is still below the 100 EMA, a bearish outlook remains the same as long as the 100 EMA is headed to the downside. Consequently, the level of 1.3079 remains a key resistance zone.
If the pair fails to pass through the level of 1.3107, the market will indicate a bearish opportunity below the strong resistance level of 1.3107.
In this regard, sell deals are recommended lower than the 1.3079 level with the first target at 1.2972. It is possible that the pair will turn downwards continuing the development of the bearish trend to the level 1.2934.
However, stop loss has always been in consideration thus it will be useful to set it above the last double top at the level of 1.3145 (notice that the major resistance today has set at 1.3145).
Tips :
Only a successful trader is the one who combines the skills of the three main factors in his/her trading. Hence, you should believe that the skills of trading should be limited to three broad categories:
- Technical Analysis.
- Fundamental analysis.
- Trading psychology built-in capital management.
Descriptions for the trading signal systems:
The range in the long term means return strategy that looks to go against strong divergence from the pair's average value. It will usually hold trades for a prolonged period of time and is one of the slower moving trading strategies. There is another range using sentiment as a filter for its trades. It will use a simple oscillator range trading strategy but only take the trading signals if Fibonacci retracement levels are not at extremes because there a real relation between the Fibonacci and range that lies in: Fibonacci in a range trade is looks like the trend is trapping and going up or down, if sell or buy in the long term in this period you will go sure for losing profit. It is probably short term in nature and will tend to trade very little during times of strong trending moves. It is also one of the most volatile sensitive trading systems and will tend to do rarely during times of sharp currency moves.