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GBP in a critical condition

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GBPUSD extends the losses but no surprise here as the bearish setup is very technical. The price bounced from the long-term resistance on the 1.303 and from the mid-term down trendline. What is more, we broke the lower line of the flag and the horizontal support on the 1.293. All that together gives us a strong sell signal.

Yesterday, EURAUD created a doji on the daily chart and on the H1 chart, we got a head and shoulders pattern. That was a great signal to take some profits from the huge upswing. Was, because it is not anymore. After initial downswing, now, the price is ignoring the resistance and is climbing vastly higher making new daily highs.

GBPJPY has a great sell signal after bouncing from a combination of four strong resistances. Currently, we may experience a small upswing but the long-term sentiment is definitely negative.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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