- April 6, 2022
- Posted by: Tradingshot Articles
- Category: Forex
GBPUSD failed to break above the 1D MA50 (blue trend-line) and the 0.5 Fibonacci retracement level last week and as a result the market lost confidence and resumed the long-term bearish trend. That has been within a Bearish Megaphone pattern since July 2021.
The selling fractal since February 17 resembles the sequence of late October – early December 2021. The pair also failed to break above the 1D MA50 and the 0.5 Fib after a short-term rebound, and eventually made a new Megaphone Lower Low on the 1.382 Fibonacci extension. That extension is currently at 1.2750. Only a break above the 1D MA50 can be treated as a short-term buy aimed at the 1D MA200 (orange trend-line).
*Note: The RSI has been under Lower Highs since January 13.