May 31, 2018
The daily chart shows an uptrend line breakout occurred on 10th May and bearish momentum finally returned. Yesterday also we have seen full on bearish sentiments in the trading session and bearish marabuzo candlestick has been posted on the daily technical chart. The way bulls are reacting it seems like they are approaching the 1.7100 level in short term.
Well the odds are in favor of bears and our bias remains bearish on the pair as long as pair is trading and sustaining below the 1.8000 level which is a immediate key resistance level for the time being. By looking at the daily chart we can see that pair is heading towards south side and making successively lower lows and lower highs. Presently pair is trading below all the major and minor EMA lines which are generating bearish sentiments.
As progress towards an agreement on the key Irish border matter remained indefinable this kept back the pair in under pressure. Traders & Investors are not likely to see any particular reason to buy into GBP unless there are signs that the UK and EU are moving closer to a significant agreement on the main Brexit issues.
A bearish crossover on MACD indicator is favoring the bears and RSI is favoring the negative signal for bears. Well indicators suggest that it has arrived into oversold territory so some correction can’t be ruled out. The 1.8000 level is immediate resistance level followed by 1.8161 whereas 1.7150 level is strong key support level followed by 1.7100 level.
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