GBP/USD: Bears are falling below 1.4120

General overview: GBP/USD remains cautious near the 1.3700 mark.US Treasury yields trade higher which supports USD. Negative equities point towards risk-off sentiment among investors. The towards the pair is falling back foot and trading towards the selling side in the market. The movement is toward the sell side in the market. The pair is touching the weekly lows 1.4120. GBP/USD trades cautiously above 1.4150 on Wednesday. The pair licks its wound after falling sharply from the highs of 1.4248 in the previous session. Negative divergence in momentum oscillator throws caution on aggressive bids. The pair is falling below important measures in the chart. The pair formed the short term downward wings in the market a market finds the breakout level at 1.4096 and fall towards the downside in the market.

Technical analysis: From the technical point of view we can say that market sit towards the selling side in the market. On the hourly chart the market makes the downside trend and swings are toward the lower lows in the market. The pair is below the strong EMA and SMA lines and creates the selling side in the market. The potential downside swings had been created in the market. The pair fined the breakout at the level 1.4250 in the chart and continues towards the downtrend in the market. On the 4 hourly chart market creates the breakout level and the strong support level is 1.4100 followed by 1.4050 and resistance level is 1.4200 followed by 1.4250. The negative divergence in the Relative Strength Index (RSI) indicator implies a significant downward reversal in price. In doing so, the bears would march toward the 50-day Simple Moving Average (SMA) at 1.3930.

Trade idea:  Traders will move toward the sell side at level 1.4145 targets will be 1.4080 followed by 1.4040 and stop loss will be 1.4210.

Leave a Reply