GBP/USD Run Might Come to an End
October 16th, 2009 Posted in Tech Analysis
Name: Anton Eljwizat
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In yesterday’s trading, the GBP/USD cross experienced much bullishness, as it now stands at 1.6316. However, it seems that this trend may be coming to an end. I will illustrate below that the GBP/USD may very well be heading for a reversal. Forex traders have the opportunity to wait for the downward breach on the hourlies and go short in order to ride out the impending wave.
• The technical indicators used are the Slow Stochastic, Relative Strength Index (RSI) and MACD.
• Point 1: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
• Point 2: The RSI signals that the price of this pair currently floats in the over-bought territory, indicating downward pressure.
• Point 3: The Slow Stochastic indicates an impending bearish cross, which may signal a downward movement is going to occur in the near future.
GBP/USD 4-Hour Chart
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Tags: dollar, Forex, forex blog, GBPUSD, MACD, Pound, RSI, Slow Stochastic, Technical Analysis, USD
