GBPUSD continues to hold below the major downtrend line after the release of U.K Retail Sales m/m yesterday. Candles continue to find resistance at 1.4950 before falling below 1.4900. With the trading week coming to an end today, volatility is bound to be low due to profit taking in the market. However, with the release of U.S Final GDP q/q later in the day, speculations in the market could drive prices in either direction.
Observing the H4 chart, candles have broken below the uptrend line connecting the lows of the previous uptrend. Bearish momentum was observed to be strong as seen by the sharp drop in prices after candles touched 1.4982. Gains were erased and the continuation of the bearish trend is expected. 20 SMA starts to hook below the 55 EMA, indicating a possible entry to engage in a shorting position.
Focusing on the H1 chart, candles now draw near the support at 1.4850. Candles show uncertainty, refusing to give a clear indication of either holding above or below the support price. For aggressive traders looking to engage in a shorting position today, it is possible to wait for candles to break below 1.4850 before making any entries.
|Bearish if candles hold below 1.4850||1.4655||1.4722||1.4850||1.4982||1.5041||1.5125|