GBPUSD Short|Range Resistance| Overthrow| Bearish Retest| 200MA

18 июл. 2020 г.

Evening Traders,

Today’s Analysis – GBPUSD – range trading putting in a bearish retest with the immediate target range midpoint.

Points to consider,
- Overthrow (no follow through)
- Range resistance confluence (200MA)
- Range midpoint (Local support)
- Oscillators neutral
- Volume below average
-
GBPUSD’s immediate trend is bearish with consecutive lower highs. Price broke range resistance with no follow through (over throw), further solidifying the bearish bias

Range resistance is in confluence with the 200 MA, price is putting a probable bearish retest here. The range mid-point will be the immediate target – local support.

The RSI is neutral whilst the stochastics is in the upper regions, indication that momentum is stored to the downside in the market.

Volume is trading below average, an influx is likely as price trades to the downside.

Overall, in my opinion, GBPUSD is likely to test range midpoint as price action looks weak. A bearish retest is likely forming where a short can be placed with defined risk.

What are your thoughts?

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And remember,

“Genuine acceptance that there will be losses on your way to market success will greatly decrease the hurt when they eventually come.” ― yvan Byeajee