- June 9, 2022
- Posted by: Tradingshot Articles
- Category: Forex
The GBPUSD pair has hit our Target of the previous analysis, breaking in the process that Bearish Megaphone pattern to the downside:
Right now a new Bearish Megaphone has been formed with the price trading sideways near the 1D MA50 (blue trend-line) after failing to break it on the May 27 High. Basically the price has been trading below the 1D MA50 since February 24, so that is an important Resistance level. As long as it holds, the pattern should target the 2.5 and 3.0 Fibonacci extension (1.1880 and 1.1505 respectively).
A break and 1D candle close above the 1D MA50 though should be enough to kick-start a medium-term rise to the 1D MA200 (orange trend-line). As for the long-term, only a break above the Lower Highs trend-line that started one year ago in June 2021, can accumulate a wave of buyers and sustain a new bullish trend.
Note that if you are looking for a confirmed sell, wait until the 1D MACD makes the new Bearish Cross. It has been a very accurate signal for over 1 year.