GBP/USD: Under Selling Pressure
AvaTrade | May 23, 2014 06:52AM ET
The GBP/USD has formed a complex reverse head and shoulder pattern on a 60 minute time frame. The pattern is one the most successful bullish pattern and if it does completes its projection, we could easily see the price above the major resistance mentioned below. However, the pattern does have a lot of violations so far such as trading below the neckline and also has broken below the upward trend line which represents that the bears are taking the control.
The RSI is trading inline with the price action which means that the bias could still be to the downside and moreover, we are still away from the oversold region, which usually brings the counter trend traders.
h3Important Zones/h3
- Resistance
1.6937-1.6919 Minor Support
1.6972-1.6995 Major Support
- Support Zone
1.6817-1.6799 Minor Support
1.6748-1.6730 Major Support
Disclosure & Disclaimer:
The above is for informational purposes only and NOT to be construed as specific trading advice. responsibility for trade decisions is solely with the reader. by Naeem Aslam
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